They are, however, considering another change which would increase the annual mortgage insurance premium to .85%. Currently the rate is .55% for loans over 90% LTV, which is the majority of FHA loans. Recently, the up-front mortgage insurance premium was increased from 1.75% to 2.25%.
If you are interested in a home that doesn't qualify for FHA financing because it needs repairs, the FHA 203(k) rehab loan is a great way to go. The streamline version allows for up to $35,000 in repairs and the full 203(k) allows for repairs up to the total FHA loan limit. Additional benefits may be realized because there may be fewer people bidding on a home that needs repairs and the improvements that are done to the home would customize that home to the buyer's taste.
I'd love to know your thoughts on this post or any of my other posts - agree, disagree, or indifferent. If you have any questions, please feel free to contact me by checking out my website at www.TheWunderliTeam.com.