BY BOB VAUGHAN , PRESIDENT OF D & V HOMES MORTGAGE FHA LOWERS MORTGAGE INSURANCE PREMIUMS
The United States Department of Housing and Urban Development ( HUD ) announced Monday , January 9th 2017 that the mortgage insurance premiums on loans insured by the Federal Housing Administration ( FHA ) will be reduced by 25 basis points for loans closing on or after January 27 , 2017 . The most popular down payment for an FHA mortgage loan is 3.50 %, which currently carries MIP of . 85 % annually . With the new change , MIP will be reduced to 60 % annually , saving someone with a $ 200,000 mortgage approximately $ 500 per year . This will result in huge savings for FHA borrowers and will also help lower debt-to-income ratios , ultimately leading to higher affordability for FHA borrowers .
CONFORMING CONVENTIONAL AND FHA LOAN LIMITS ARE ON THE RISE
The Federal Housing Finance Agency ( FHFA ) announced in November 2016 that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac ( Conventional Conforming Loans ) will increase in 2017 . In most of the country , including Lee County , the maximum 2017 loan limit for one unit properties will be increased to $ 424,100 from $ 417,000 .
About a week later in early December , the Federal Housing Administration ( FHA ) followed the trend of increasing loan limits , announcing that the maximum FHA loan amount will also be increased for 2017 . The FHA announced that the “ floor ” will be increased to $ 275,665 from $ 271,050 , which will be the limit in Lee County for one unit properties . The ceiling for FHA mortgages in higher cost areas has also increased from $ 625,500 to $ 636,150 . This is the first increase in baseline loan limits since 2006 .
10 RPCRA . ORG | MAR / APR 2017