• Search for your dream home

    Our tools can help you find the house you've been looking for and our team will help with lending options.

    Find a Home
  • A fresh approach to residential mortgage lending.

    We utilize only the most recent technology and best possible practices to ensure your time working with us is as efficient as possible.

    Get Started
  • Getting your mortgage loan just got easier

    We do all the work so you don't have to.

    Contact Us
  • Your perfect home is only a few clicks away

    Secure the home loan you need now. Use our convenient online loan application.

    Apply Now

FHA Risk Based Premiums Effective 7-14-2008

Posted on June 23, 2008 by Ray Williams (NMLS #216267).

Effective with new FHA case number assignments on or after July 14, 2008, FHA will implement risk-based premiums on one- to four-unit single family mortgages. The premium matrix is shown below, replacing the premium matrix in Mortgagee Letter 00-38, which identifies the current mortgage insurance premiums for FHA’s single family programs.

Highlights Regarding FHA’s Risk-Based Premiums

· UFMIP will range from 1.25 percent of the loan amount for lower-risk borrowers to 2.25 percent for riskier borrowers.

· No borrower who qualifies for a FHA-insured mortgage will pay more than 2.25 percent on the upfront mortgage insurance premium (UFMIP) and 55 basis points for the annual premium.

· Borrowers with credit bureau scores must be risk-classified by FHA’s TOTAL Mortgage Scorecard.

· Those in risk categories without a premium shown are not eligible for FHA-insured mortgage financing.

· Borrowers without credit bureau scores will need to be manually underwritten and deemed as eligible based on criteria described in Mortgagee Letter 2008-11; the mortgage insurance premium will be determined by the loan-to-value ratio for the non-traditional column in the premium schedule.

Leave a Reply

Your email address will not be published. Required fields are marked *