NEW FHA Guidelines effective April 1st, 2013
Effective for all FHA Loans with Case #’s issued after April 1st, 2013
Traditional 3.5% down FHA purchase;
Old Guideline : Monthly PMI - 125 BPS (basis points) – Cancelled at 78% LTV & 5 years
New Guideline : Monthly PMI – 135 BPS –PMI to remain for life of loan
This is huge!! One of the few attractive traits remaining about FHA was the ability to let someone “assume” your client’s loan down the road when they go to sell their house. Having a 3.25% rate when your other competition in the MLS is having to deal with likely higher rates would give your clients a leg up – Now with the PMI piece, that advantage has just been negated.
Author Bio: Rob Alley earned a bachelors degree at Virginia Tech, in Blacksburg, VA in Biology. Rob Alley has been licensed for 6 years, he and his team of 4 agents consults with homeowners regarding Real Estate transactions and speciliazes in listing and selling Central Virginia Real Estate - Charlottesville, Louisa, Orange, Lynchburg, Nelson, Fluvanna, Amherst, Bedford, Campbell, Waynesboro and Augusta. Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
Charlottesville Real Estate Experts
Comments
Post a Comment