Attention Homebuyers, Homeowners and Real Estate Agents !!
Effective April 18th 2011, the annual Mortgage Insurance Premium (MIP) for FHA loans which also includes the FHA 203k, will be increased by a quarter percent (.25 %). This means FHA 203k loans as well as regular FHA loans will cost more per month.
So, what do you need to do.
Well, if you’re planning to purchase or refinance a property using the FHA 203k loan then you must take action before the deadline of April 18th 2011. If not, any FHA purchase or refinance after that date will be subject to the increase. Find out what steps you need to take by contacting your 203k specialist as soon as possible. Remember this increase effects all FHA loans not only the 203k, so the FHA specialist for your state can help.
Now if you miss the April 18th deadline there’s no need to panic. FHA loans even with the (MIP) increase are still one of the best deals in town when it comes to financing a 1-4 unit property. The FHA advantage of low down payment and low equity requirement will just come at a higher cost.