 FHA increasing MIP means Homepath is an even better option.Wednesday, April 6, 2011 - Article by: The Baker Team at Cobalt NMLS190779 -
I did a comparison a few weeks back on the payment breakdown of both FHA and Homepath. Homepath of course is only allowed on Fannie Mae REO properties, but is a great program. Effective April 18th, monthly mortgage insurance premium will be once again going up by 25 basis points, or .25%. This will once again make it more challenging for worthy borrowers to buy a home as this, although is seems small, change in premium will make wanna be homeowners ineligible. The total monthly MIP will now be 1.15% of your loan amount. On the flip side, this will make an even stronger case to use Homepath financing on homes that are eligible. The down side is that the credit requirement of 660 may eliminate some people, as well as they typially don't allow for higher Debt to Income ratios. If you are thinking of buying a home through FHA and can find one by April 15th. We can reserve your place with the old premium. |
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