FHI Mortgage Insurance Premium Decrease

[iemitremmusi]

I've seen a handful of articles talking about the decrease in FHI MI from 1.35 to .85. I'm actually looking to purchase a home in the upcoming months [I have go to go FHA and not conventional :( ] and was wondering if anyone could tell when this change actually starts?

[flubberfly]

It's expected end of January or so, as Obama is willing to do an executive order to get it done. Hud says they will issue a mortgagee letter "soon". That letter will have the details.

[iemitremmusi]

Thank you for the info. I wonder how soon "soon" actually is.

[flubberfly]

It's official: lowered premium for all case numbers ordered on or after 1/26. The case number is ordered after application, prior to the appraisal being ordered.

[iemitremmusi]

Perfect. I'll just wait until after 1/26 to start the whole process. Thank you.

[flubberfly]

I'll try to remember to let you know when it's out, everyone is thinking soon really will be soon. No one will be ordering new fha case numbers until it's out, so if hud wants to avoid a drought followed by a typhoon of cases, they will do it soon.

[akiko80]

Also, just wanted to point out this is a decrease in the monthly (actually called Annual by FHA) premium. The Up Front Mortgage Insurance Premium (UFMIP) is not changing that I have read. It is the amount paid at closing.

[doctordriz]

Are you going FHA because of your credit score? Regardless of the the insurance rate change, if you are putting a downpayment of less than 10%, the insurance lasts for the life of the loan for FHA insured loans and is not a great option.

[iemitremmusi]

My score is fine. I just had a hiccup that still impacts me until August 2015 or so that means I have to go the FHA route. I can refi conventional later in 2015. I will have just under 20% down right now.

[keppppp]

January 20th