FHA Buyers--Best to get yourself Under Contract by April 18th. FHA rules are changing!!

FHA Has Raised the Rates They Charge

FHA just announced they are raising the rates that they are going to charge for the monthly MIP, what that means for the same loan it is going to cost you more per month. Example on a $400,000 loan it is now going to cost you $83 per month more. So hurry and buy your house before April 18, 2011 and have your case number assigned before that date and you will not have the added expense. If you miss that date, you will have to buy home that is $16,000 less for the price of the house to get the same payment before the increase. In todays market its all about urgency to get the best deal and monthly payment, DON'T WAIT!

Here is the FHA ALERT Notice:

FYI: FHA has increased Annual MI premiums across the board by .25% effective with case numbers issued on or after 4/18/2011.
They are also creating new case number ordering procedures and an automatic cancellation policy that is designed to stop case number hoarding. Credit Policy will be releasing Bulletin shortly.

Effective April 18, 2011, FHA Systems will require mortgagees to:

certify at the time of requesting a case number that they have an active loan application for the subject borrower and property.
provide the subject borrower's name and social security number for all new construction (i.e. proposed construction and existing construction less than one year old)
Beginning April 18, 2011, FHA systems will automatically cancel any uninsured case number (including those issued prior to April 18) where there has been no activity for 6 months since the last action except for:

loans where an appraisal update has been entered, and/or
loans where the Upfront Mortgage Insurance Premium (UFMIP) has been received
Last action includes:

case number assigned,
appraisal information entered,
firm commitment issued by FHA
insurance application received and subsequent updates, and
Notice of Return and resubmissions
Last action does not include updates to borrower names and/or property addresses. For example, making changes to the number of borrowers on the loan will not reset the 6 month timeframe for automatic cancellation.