If you're just getting back into the housing market after some time away, there are some changes you should be aware of.
First of all, the FED is no longer buying bonds or mortgage backed securities because the economy is getting better. Read more about this development and how it will affect the market by viewing our article here.
Additionally, there has been a revision of the FHA policies regarding the annual Mortgage Insurance Premium resulting in an increase to the annual MIP. Reported from HUD, this means:
- revising the period for assessing the annual MIP;
- removing the exemption from the annual MIP for loans with terms of 15 years or less and Loan to Value (LTV) ratios of less than or equal to 78 percent at origination; and
- increasing the annual MIP on all forward mortgages except single family forward streamline refinance transactions that refinance existing FHA loans that were endorsed on or before May 31, 2009 (see ML 2012-4).