The 3.5% down payment on FHA loans could be more expensive for buyers than expected. Beginning April 1, 2013, the mortgage insurance premium will go up by .1% to 1.35% which may not even be noticeable to most would-be homeowners.
The staggering increase will occur on 6/3/2013 when FHA’s policy on the duration of the required mortgage insurance will be increased for the life of the mortgage. It basically doubles the amount of total MIP if the loan is paid to term.
Below is an example with a purchase price of $175,000 with 3.5% down payment at 4% mortgage rate on 30 year term.
Regarding the current MIP duration: When the unpaid balance reaches 78% LTV of original purchase, the MIP can be released. In any event though, the minimum time must be five
One of the key factors serious buyers eye when appraising foreclosed homes for sale in the Rehoboth Beach real estate market is condition – the shape those properties have been left in. The Federal Housing Administration has weighed in with a program that can materially affect how that condition – good or bad – will finally affect the bottom line: it’s known as the FHA 203 (k).
If you are among those currently looking at Rehoboth Beach foreclosed homes for sale, the 203(k) can make a big difference. Here are some points that might influence your decision:
First in line is whether the program is applicable. HUD tells us that for a local property to be eligible, it must be a one- to four-family dwelling that has been completed for at least one year.