www.lasvegasmtg.com Report: Recent FHA changes impacting Las Vegas, NV.
By John Le Francois
www.lasvegasmtg.com Report: Recent FHA changes impacting Las Vegas, NV. has caused some home buyers to scale back their purchasing power due to increases in FHA Upfront Mortgage Insurance Premium (UPFMIP) going up from 1.00% to 1.75% and the annual mortgage insurance going up from 1.10 to 1.25% with a 3.5% down for a 30 year loan. This increase was implemented for all case numbers issued after April 12th, 2012.
For the first time HUD has implemented a two tier Annual Mortgage Insurance Premium that is dependent on the loan amount, LTV and the terms of repayment. On June 11th, 2012 there will be additional increases for counties that exceed greater then $625,000.00 purchase price.
When does the FHA Annual Mortgage Insurance Premium Decrease?
FHA's monthly mortgage insurance payments will be automatically terminated when these conditions occur:
- Mortgages with terms 15 years and less and with LTV ratios 90%>, annual premiums will be canceled when the LTV ratio reaches 78% regardless of the amount of time the mortgagor has paid the premiums.
- Mortgages with terms > 15 years, the annual mortgage insurance premiums will be canceled when the LTV ratio reaches 78%, provided the mortgagor has paid the annual premium for at least 5 years.
- Mortgages with terms 15 years < and with loan to value ratios of 89.99% and less will not be charged annual mortgage insurance premiums.