Well, they’re at it again…cue the clowns. The FHA has once again increased their premium – yes, for the second time in 6 months, the FHA’s mortgage insurance costs are changing.
While the effective date is April 18th – I just need to clear up some confusion: this actually means that you have to have a fully executed contract, the application done, everything dotted and crossed and turned into the lender so he or she can submit it so you can receive the FHA case number. This all has to be accomplished prior to April 18th.
If you receive your FHA case number on or after April 18, 2011, then your monthly mortgage insurance premium is subject to the increase.
Unfortunately, people still think that just because the paperwork is all done means that they just magically receive a case number OR even worse, believe they get a case number and then have to scramble to pull all the obligatory paperwork together. Well, that’s just not how this circus rolls.
The interesting thing here is that this increase could actually pave the way for conventional loans to be a more affordable option.
So if you fit in that box, you could possibly be in a moving truck and driving up to your new home faster and less expensively than going the FHA way. (Area property taxes and credit-worthiness apply; see your local lender (ME!) for details.)