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FHA Changes…..Very Important

I want to remind/inform you that April 1st is the date FHA changes their FHA premiums once again. They are raising their annual premiums 10 basis points. So on a $200,000 loan that will raise the monthly payment about $17 a month. Might not seem much to some but to a first time buyer that could possibly make or break a deal. Inform your clients and have them call us asap so we can get them pre-approved so they can find a home by April 1st. They do not need to close by April 1st, they just need to find a home and have us pull their FHA case number before then.

Also June 3rd is the date that FHA will be changing when a borrower can drop mortgage insurance. After June 3rd a client that originally put at least 10% down will have to keep the mortgage insurance for at least 11 years no matter how much equity they gain during that time period. For clients that put less than 10% down they will need to keep the mortgage insurance for the life of the loan. This is a huge change!

Please let me know if you have any questions. Remember that we have 24 hour upfront underwriting, 7 days clear to close, and 24 hours to send docs out. We are the quickest in the industry….take advantage of that. I have had clients get their offers accepted over others because we could guarantee an early closing.

Chris Blount
Market Manager
Movement Mortgage

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