FHA increase to borrowers

Last week FHA mortgage insurance premiums increased for all loans processed after April 18th

  

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FHA loan borrowers who are putting less than 5% down will have a monthly mortgage insurance premium of 1.15%

  

FHA borrowers who are putting 5% or more down will have a 1.10% factor for mortgage insurance.

  

Calculated for less than 5% :

Purchase Price  $200,000 - Down Payment $7,000 (3.5%) = Base Loan Amount $193,000

Up front Mortgage Insurance Premium $1930.00 ( 1.00% - Which is ffinanced) Total Loan Amount $194930.

Monthly Mortgage Insurance = $193000 x 1.15% = $2220 divided by 12 = $184.96 per month

    

 

Calculated for 5% down payment:

 

Purchase Price $200,000 - Down Payment $10,000(5%) = Base Loan Amount $190,000

Up front Mortgage Insurance Premium $1900.00 ( 1.00% - Which is financed) Total Loan Amount $191900.

Monthly Mortgage Insurance = $190,000 x 1.10% = $2090.00 divided by 12 = $174.17 per month
  

Even though many condo projects in the San Diego area are not approved for FHA financing due to delinquency rates and owner occupancy rates, there are still many properties out there that can be FHA financed.