FHA Mortgage Insurance Could Be Going Up Again…

Don’t look now, but FHA could be increasing it’s mortgage insurance premiums again.
The Federal Housing Administration Fiscal Solvency Act of 2012 has overwhelmingly passed the House and will make its way to the Senate.

Among other powers, the bill grants the FHA authority to raises its mortgage insurance premiums to as high as 2.05% annually. This is nearly twice the 1.20% rate most FHA-insured homeowners pay today.

FHA has been steadily increasing it’s mortgage insurance premiums since 2009 in an attempt to maintain solvency.

Here is a recent history of changes FHA has made…

In 2009, the FHA charged 0.55 percent

In 2010, the FHA charged 0.90 percent

In 2011, the FHA charged 1.10 percent

In 2012, the FHA charged 1.25 percent (or 1.50 percent in high-cost areas)

If you are considering an FHA loan go ahead and get one now before these increases may go into effect.  

 

That’s it for today!