FHA MIP Factors Increase
Effective with FHA Case Numbers assigned on or after April 18th, FHA increased the Annual Mortgage Insurance Premium (MIP) by .25%. The chart below shows the old and new MIP premiums as well as how much the monthly MIP will cost for a $200,000 base loan amount.
Old FHA MIP Factors
30 Year Fixed with min 3.5% down = .90 $150
30 Year Fixed with 5% or more down = .85 $142
15 Year Fixed with min 3.5% down = .25 $42
15 Year Fixed with 5% or more down = .00 $0
New FHA MIP Factors (as of Apr 18th)
30 Year Fixed with min 3.5% down = 1.15 $192 (increase of $42/mo)
30 Year Fixed with 5% or more down = 1.10 $183 (increase of $41/mo)
15 Year Fixed with min 3.5% down = .50 $83 (increase of $41/mo)
15 Year Fixed with 5% or more down = .25 $42 (increase of $42/mo)
There are no changes to the Up-front Mortgage Insurance Premium, which remains at 1%.
April 20, 2011 by James Williamson · 2 Comments
James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.
On FHA how much do you need to put down to not pay MI. I had a bankruptcy that is 2 years old I kept my house but I want a vacation home using FHA is that possible.
On a 30 year FHA loan, you have to pay 1.75% up-front mortgage insurance and 1.2 to 1.25% monthly mortgage insurance no matter how much you put down. This is a lot different than a Conventional loan where you can put 20% down to avoid PMI.
Bankruptcies are a challenge and you generally have to wait 2 years on an FHA loan and 4 years on a Conventional loan to obtain a mortgage after having a past bankruptcy. Chapter 13 Bankruptcies are more lenient than Chapter 7’s.
You can’t get an FHA loan against a 2nd home as they insure Primary Residences only. The minimum down payment on a Conventional 2nd home loan is 10% but excellent credit at that down payment is required.