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Effective
October 1, 2008
The
Housing and Economic Recovery Act of
2008 provides for a one-year
moratorium on the implementation of
FHA’s
risk-based premiums beginning
October 1, 2008.
Consequently, effective with new FHA
loans on or after that date, FHA
will no longer base its mortgage
insurance premiums on a combination
of credit bureau score and
loan-to-value ratio. The new
premiums (upfront and annual) to be
implemented for all loans for which
a case number is assigned on or
after October 1, 2008, are described
below..
Upfront
Premiums:
FHA will charge an upfront premium
in an amount equal to the following
percentages of the mortgage:
-
Purchase Money Mortgages and
Full-Credit Qualifying
Refinances = 1.75 Percent
-
Streamline Refinances (all
types) = 1.50 Percent
-
FHASecure (Delinquent
Mortgagors) = 3.00 Percent
Annual
Premiums:
An annual premium, shown in basis
points below, to be remitted on a
monthly basis, will also be charged
based on the initial loan-to-value
ratio and length of the mortgage
(except for FHASecure) according to the
following schedule:
-
Purchase Money Mortgages,
Full-Qualifying Refinances, and
Streamline Refinances:
|
LTV |
Annual for Loans >15 Years) |
LTV |
Annual for Loans < 15
Years |
|
<
95 |
50 |
<
90 |
-None- |
|
>
95 |
55 |
>
90 |
25 |
|
LTV |
Annual (all loan terms)
|
|
<
95 |
50 |
|
>
95 |
55 |
|
