Excellent Article in the New York Times recently. There are some very significant changes for FHA Mortgage Borrowers.
One change raises the annual insurance premium, paid monthly by the borrower, setting it at 0.85 percent to 0.9 percent of the loan balance, depending on the down payment or equity owned; the amount used to be 0.5 percent to 0.55 percent. The other change lowers the one-time upfront insurance premium that borrowers must pay, to 1 percent of the loan balance from 2.25 percent.
What this means is the upfront cost to a potential FHA Borrower just got cheaper but the monthly PMI just got much more expensive.
It pays to have good FICO credit scores readers!
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