South Florida Real Estate News

FHA UFMIP & Monthly MIP Increase Effective April 1st, 2012

March 2nd, 2012 8:41 PM by Linda Barratt PA and Justin Cervantes, PA

Great news...

FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500. This change is effective for case numbers assigned on or after April 1, 2012. 

FHA will increase its annual mortgage insurance premium (MIP) by 0.35 percent for loans above $625,500. This change is effective for case numbers assigned on or after June 1, 2012.

Upfront premiums (UFMIP) will also increase by 0.75 percent from 1.00 percent to 1.75 percent. This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2012.

Great news to protect FHA's MMI Fund, not so great news for buyers. In short, get your buyers off the fence and getthem into a house today! Since these increases will slightly increase monthly payments, it will effect borrowers' debt-to-income (DTI) ratios...simply put, most buyers will lose some purchasing power. 

This is important since FHA has the most flexible DTI ratios available today. All other methods of financing are more restrictive.

On a more positive note, the Get Motivated! seminar was fantastic!!! Maybe next time it will be in Broward or Palm Beach. ;)

REMINDER: Saturday, March 10, 2012 6-9pm

The Autism Project of Palm Beach County (APPBC), a non-profit organization, is on the front lines in supporting individuals with autism spectrum disorders in Palm Beach County. APPBC will be holding its 11th annual Renaissance Food & Wine Festival fundraising event to benefit children with autism spectrum disorders in our county. This exciting social event includes a cocktail reception with appetizers, open wine bar, music, and silent/live auctions.

This year’s Festival will be held on Saturday March 10, 2012 from 6-9pm at the charming Downtown at the Gardens. Through sponsorships and auction proceeds, the annual Festival raises money to support the operation of the Renaissance Learning Center, a charter school serving children with autism spectrum disorders ages 3 to 14, and the Renaissance Learning Academy serving students with autism spectrum disorders ages 14 to 21. Everyone’s invited and can attend the evening’s event for a donation of $75 per ticket!

Happy Friday!

Until next time...JJ

Posted in:General
Posted by Linda Barratt PA and Justin Cervantes, PA on March 2nd, 2012 8:41 PM

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