Great News For FHA Buyers
Great News For FHA Buyers
Hot off the press!!! FHA just announced the reduction of the monthly mortgage insurance premium!! This is great news for FHA buyers because this will give homebuyers more home buying power and monthly savings. FHA monthly mortgage insurance premium will be reduced from .85% down to .55% for loan amounts at or below $726,200. Now for FHA high balance loans with loan amounts between $726,200 and $977,500 in San Diego County, the monthly mortgage insurance premium will also be reduced from 1.05% down to .75%. These changes are set to take effect on FHA loans submissions registered on or after March 20th, 2023 however, we will implement these changes on February 27th, 2023. These reductions are based on the minimum of 3.5% down payment but below is the full list of other MIP amounts depending on down payment and term of the loan. FHA’s annual MIP is calculated as a percentage of the outstanding loan balance. For example, an outstanding loan balance of $200,000 with a 50 basis point (0.5%) annual MIP, would yield an annual MIP amount of $1,000.
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Annual Mortgage Insurance Premium (MIP) |
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Applies to all Mortgages except:
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| Hawaiian Home Lands (Section 247) do not require Annual MIP | |||||||
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Mortgage Term of More Than 15 Years |
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| Base Loan Amount |
LTV |
New MIP (bps) |
Previous MIP (bps) |
Duration |
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| Less than or equal to $726,200 | ≤ 90.00% |
50 |
80 |
11 years | |||
| > 90.00% but ≤ 95.00% |
50 |
80 |
Mortgage term | ||||
| > 95.00% |
55 |
85 |
Mortgage term | ||||
| Greater than $726,200 | ≤ 90.00% |
70 |
100 |
11 years | |||
| > 90.00% but ≤ 95.00% |
70 |
100 |
Mortgage term | ||||
| > 95.00% |
75 |
105 |
Mortgage term | ||||
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Mortgage Term of Less than or Equal to 15 Years |
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| Base Loan Amount |
LTV |
New MIP (bps) |
Previous MIP (bps) |
Duration |
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| Less than or equal to $726,200 | ≤ 90.00% |
15 |
45 |
11 years | |||
| > 90.00% |
40 |
70 |
Mortgage term | ||||
| Greater than $726,200 | ≤ 78.00% |
15 |
45 |
11 years | |||
| > 78.00% but ≤ 90.00% |
40 |
70 |
11 years | ||||
| > 90.00% |
65 |
95 |
Mortgage term | ||||
Contact me to learn more about FHA loans or any other loan products that I offer. I’d be happy to help.
