The Federal Housing Administration (FHA) recently announced a significant reduction in the annual mortgage insurance premium (MIP) for FHA loans. This reduction means that borrowers who obtain an FHA loan will pay lower MIP rates, resulting in lower monthly payments and more affordable homeownership.
The FHA has reduced the MIP rate from 85 basis points (bps) to 30 bps, a significant decrease of 55 bps. This reduction applies to new FHA loans endorsed for insurance by FHA on or after March 20, 2023.
The MIP is a fee that borrowers pay to the FHA to insure their loans against default. This fee is typically added to the borrower’s monthly mortgage payment and is used to cover the costs of administering the FHA’s mortgage insurance programs.
The FHA’s decision to reduce the MIP rate is a welcome change for borrowers who are looking to purchase a home but are concerned about the high cost of homeownership. For more information about FHA financing give us a call at (269) 360-7109 or apply online!
The real estate market is constantly changing, leading to many challenges for buyers and sellers alike. Never has there been a greater opportunity to leverage innovative lending solutions to better serve your clients. As you know we think outside of the box. Yes we do lots of loans that fit in the box, but getting the deals done that don’t fit in the box can make all the difference in this market. During this class we will cover some more unique loan programs and ways to structure transactions to help get offers accepted in an unconventional world. This class is approved for 1 hour of continuing education thank you Devon Title for sponsoring the continuing education portion of this event!
Here is a list of some of the things we will cover during the event: