This morning HUD announced a 25 basis point reduction in the annual MIP fee effective for loans with a closing/disbursement date on after January 27, 2017. That takes the fee from 80 to 55 bps for the loan terms of <= $625.5k loan size and <=95% LTV. The new MIP for loans >95% LTV is now 60 bps vs. 85 bps earlier.
This reduction makes FHA even more competitive for first time homebuyers, especially those buyers with lower credit scores. If you are looking at homebuying this year, this just made it more in reach for many. Call me today to become pre-approved to buy your first home! 503 581 8100
Please use the following link to view this morning’s HUD notice.
The question on all of our minds is whether or not Congress will extend the 8000 Tax Credit for First Time Homebuyers that is set to expire on December 1, 2009.
The House has passed a potential extension for Veterans but this still needs to pass the Senate. We are all anxiously awaiting any news.
I believe we won’t know for certain of the passage of any extension until the last possible moment. Congress doesn’t want to halt the homebuying surge that has occured they need it to stay brisk and hopefully continue. The way to do that is to keep everyone on their toes that this is expiring and we need to get as many purchases done now.