Tim Bradford 
Loan Officer 
VM/Cell (216) 324-8113 
FAX 440-884-5034 

             

   

FHA Upfront Premiums (On or After Oct 4, 2010)

Effective for FHA loans for which the case number is assigned on or after October 4, 2010, for FHA traditional purchase and FHA refinance products, the FHA upfront premium, shown in basis points below, will be charged for all amortization terms. 

Mortgage Type

FHA Upfront Premium Requirement

Purchase Money Mortgages and Full-Credit Qualifying Refinances

100 BPS - 1% of Loan Amount

Streamline Refinances (all types)

100 BPS 1% of Loan Amount

FHA Annual Premiums
(Effective 4-17-2011 the monthly MIP will increase .25%)

Effective for FHA loans for which the case number is assigned on or after October 4, 2010, FHA will increase the FHA annual premiums collected on a monthly basis. For FHA traditional purchase and FHA refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule:

LTV

Annual Premiums for Loans > 15 Years

= or < 95 percent

85 BPS - .85% of Loan Amount

> 95 percent

90 BPS - .90% of Loan Amount

The FHA annual premium for amortization terms equal to or less than 15 years remains unchanged and is collected according to the following schedule:

LTV

Annual Premiums for Loans = or < 15 Years

= or < 90 percent

NONE

> 90 percent

25 BPS - .25% of Loan Amount

 

FHA Single Family Mortgage Insurance

Upfront and Annual Mortgage Insurance Premiums

Loan Terms Greater than 15 years     
Effective as of October 1, 2008 to September 30, 2010

 

Upfront Mortgage Insurance Premiums (UFMIP) are added to the Base FHA Mortgage and financed into the loan

Purchase Money Mortgages and

Full Qualifying Refinances

1.75% See April 5th, 2010 Change

EFFECTIVE APRIL 5, 2010 THE UFMIP WILL BE INCREASING  2.25%

Streamline Refinances

All Types

1.50%   Now 2.25%

FHA Secure

Delinquent Mortgagors

3.00%

Annual Premiums will be charged based on the initial LTV ratio and length of the mortgage            (except for FHASecure delinquent mortgages)

Purchase Money Mortgages, Full-Qualifying Refinances, and Streamline Refinances

LTV

Annual for Loans

Over 15 years

LTV

Annual for Loans

15 years of Less

LTV <  95%

.50

LTV <  90%

None

LTV > 95%

.55

LTV > 90%

.25

FHA Secure Delinquent Mortgagors

Annual Premiums for all Loans regardless of term

LTV <  95%

.50

LTV > 95%

.55

 

Calculating FHA Monthly and Upfront MIP

 

FHA Upfront MIP       UFMIP

UFMIP based on MIP Chart

Upfront MIP + Base Mortgage = Full Mortgage

Full Mortgage and Base Mortgage must be different

LTV is calculated on the Base Mortgage Amount

$175,000 x 1.75% = $3,062.50   (.50 will be paid in cash at closing)

$175,000 + $3,062.00 = $178,062.00 Full Mortgage

FHA Monthly MIP

Base Mortgage x Monthly factor ¸ 12 = Monthly MIP

$175,000 x .55% ¸ 12 = $80.21 monthly MIP 

 

Most FHA Loans require both UFMIP and Monthly MIP -  Check the appropriate MIP chart for your loan perimeters.

 

Borrowers who have decision credit scores below 500 must have loan-to-value ratios less than 90 percent to qualify for an FHA-insured mortgage.

 

Cancellation of Annual MIP

      For mortgages with terms greater than 15 years, the annual MIP will be cancelled when the LTV reaches 78% based on the original value of the loan, provided the borrower has paid the annual MIP for at least five years.

      For mortgages with terms of 15 years of less, the annual MIP will be cancelled with the LTV reaches 78%.

      The borrower cannot request that it be removed once they feel they have reached 20% equity.

      The borrower would have to refinance to have it removed before then.

      The Annual MIP of .50% will be collected the entire duration of the loan for Condo’s and 203k loans closed prior to January 1, 2006, regardless of the term or LTV.

 

Loan Amount Calculations

The following applies to the Mortgage Calculation

      FHA has two different loan amounts

      Base Mortgage is the calculated loan amount without the financed MIP

      MIP chart is following

      FHA MIP (Mortgage Insurance Premium) is done as a Split Premium with part added to the loan amount and part monthly

      Monthly MIP is based on the Base Mortgage Amount

      Total Mortgage Amount is the Base Mortgage plus FHA required repairs or allowable improvements plus the financed MIP

      Total Mortgage Amount cannot exceed the county maximum listed at www.hud.gov

 

 

FHA Mortgage Amount Types

Base Mortgage

Purchase Price or Appraised Value (whichever is lower) x the appropriate factor per the table above if borrower is paying their own closing costs

      Origination Fee is calculated on the Base Mortgage

      Monthly MIP is calculated on the Base Mortgage

Total Mortgage

Base Mortgage + the Upfront MIP

      Discount Points are calculated on the Total Mortgage

      Yield Spread is typically calculated on the Total Mortgage

      FHA required repairs or allowable improvements can be added to the Base Mortgage for the Total Mortgage

      Qualifying is based on the Total Mortgage

Mortgage Amount Calculation

Purchase Price

$225,000

3.5% down

$7,875

Base Mortgage

$217,125

 

Calculating UFMIP – Up Front Mortgage Insurance Premium

Base Mortgage

$217,125

X

1.75% UFMIP

$3,799.69

Base Mortgage +

UFMIP

$220,924

Full Mortgage

Calculating Monthly MIP

Base Mortgage

$217,125

X

.55%

$1,194.19

¸ 12 =

Monthly MIP

$99.52

Calculating Origination Fee

Base Mortgage

$217,125

X

1%

$2,171.25

Maximum of 1% Origination Fee

Calculating Discount Points

Full Mortgage

$220,924

X

1% Discount Point

$2,209.24

 

 

FHA Single Family Mortgage Insurance - Upfront and Annual Mortgage Insurance Premiums  (All Loan Terms)
Effective with case number assignments as of October 1, 2008

LTV
Loan Term

Purchases – Full Credit Qualifying Refinances (Non-Delinquent FHASecure)

Streamline Refinances

All Delinquent FHASecure Loans

> 95%
Greater than 15 Years

1.75% / .55%

1.50% / .55%

3.00% / .55%

< 95%
Greater than 15 Years

1.75% / .50%

1.50% / .50%

3.00% / .50%

> 90%
Less than or equal to 15 Years

1.75% / .25%

1.50% / .25%

N/A

< 90%
Less than or equal to 15 Years

1.75% / none

1.50% / none

N/A

Notes:

·   All loans, except non-credit qualifying streamline refinances, are required to go through TOTAL Scorecard, even if the borrower has no credit score, in order to be evaluated and properly assessed by FHA.

·   These premiums apply to the FHA 203(b) and 234(c) loan programs, but do not apply to the 238(c) (military impact areas) loan program.

·   FHA is not authorized, and will not, insure any mortgages for which new FHA case number assignments are made on or after October 1, 2008, where the above premium structure has not been utilized.


 

FHA Single Family Mortgage Insurance - Upfront and Annual Mortgage Insurance Premiums
(Loan Terms > 15 years)
Effective as of July 14, 2008

All premiums are specified in basis points (0.01%)

Decision Credit Score (FICO)

LTV

850-680

679-640

639-600

599-560

559-500

499-300

NON-TRADITIONAL

≤ 90.00

125/50

125/50

125/50

150/50

175/50

175/50

150/50

90.01-95.00

125/50

125/50

150/50

175/50

200/50

n/a

175/50

> 95

125/55

150/55

175/55

200/55

225a/55

n/a

200/55

  1. a. A first-time homebuyer, with HUD-approved counseling, will pay only 200 basis points for the upfront mortgage insurance premiums.
 

Tim Bradford 
Loan Officer 
VM/Cell (216) 324-8113 
FAX 440-884-5034 

        

MB.803389.000
LO.007173.000

Tim Bradford -- OHIO MB.803389/LO.007173 ---- NMLS CO.142066/LO.250013
6363 York Road #300, Parma Heights, Ohio 44130

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