Great New Savings for FHA and VA Buyers
WHAT YOU'LL LEARN
The FHA is lowering its required annual monthly mortgage insurance premiums (MIP), meaning an average of $800 in savings for your FHA buyers each year!
The VA is reducing its funding fees by 0.15-.3%, depending on down payment and first or subsequent use.
Atlantic Bay is already writing loans based on these new guidelines.
WHAT YOU'LL LEARN
The FHA is lowering its required annual monthly mortgage insurance premiums (MIP), meaning an average of $800 in savings for your FHA buyers each year!
The VA is reducing its funding fees by 0.15-.3%, depending on down payment and first or subsequent use.
Atlantic Bay is already writing loans based on these new guidelines.
This month, I’m excited to talk about updates to FHA and VA loans that can really help your buyers save!
The FHA is lowering its required annual monthly mortgage insurance premiums (MIP) from 0.85 to 0.55 percent. This can mean an average of $800 in savings for your FHA buyers each year!
And for loans closed on or after April 7, 2023, the VA is reducing its funding fees by 0.15-.3%, depending on down payment and first or subsequent use.
Atlantic Bay is already writing loans based on these new guidelines.
FHA Updates
Every year, Federal Housing Administration (FHA) loans help thousands of buyers with lower credit or low-to-moderate income achieve homeownership. FHA loans require a one-time, upfront mortgage premium (UFMIP) of 1.75% of the loan amount, as well as monthly mortgage insurance premiums (MIP) for the life of the loan. The monthly MIP has been reduced by 30 basis points, meaning the average FHA borrower (single-family, $265,000 mortgage) will save roughly $800 each year, and buyers with homes near the $467,700 national median home price can save more than $1400! The upfront 1.75% amount has not changed, but it can be financed into the total loan amount. The reduction applies to all eligible property types, including single family homes, condominiums, and manufactured homes. This is a great opportunity to enjoy all the benefits of an FHA loan, for less!
Lower VA Funding Fees
Department of Veterans Affairs (VA) loans help qualified veterans, service members, and spouses achieve homeownership with benefits like 100% financing and no loan limits for full entitlement. Now VA borrowers will pay 0.15-.3% less in funding fees, which are the upfront fees Veterans pay instead of a required down payment. The fee amount depends on any down payment the Veteran chooses to pay (not required) and “first” or “subsequent” use. For example, a Veteran using their VA benefit for subsequent use would have paid a funding fee of 1.65% or $4,950 on the purchase of a $300,000 home. Now the fee will drop to 1.5% or $4,500.
Remember:
Funding fees can be financed into the loan amount!
Fee decreases apply to purchase, construction, and cash-out refinance loans.
New fee rates do not apply to Interest Rate Reduction Refinance Loans (IRRRL).
I would love to talk more about these updates, and answer any questions your buyers have about mortgages. Reach out today!