FHA has cuts the MIP (Mortgage Insurance Premium) by 0.5%.  Upfront MIP (UFMIP) remains at 1.75%.  This reduces the ongoing cost of borrowing and enhances the borrower’s affordability.  Another measure to boost the housing market.

Term > 15 Years
Base Loan Amt.
LTV
Current MIP
New MIP (01/26/15)
≤ $625,500
≤ 95.00%
1.30%
0.80%
≤ $625,500
> 95.00%
1.35%
0.85%
> $625,500
≤ 95.00%
1.50%
1.00%
> $625,500
> 95.00%
1.55%
1.05%

Term ≤ 15 Years
≤ $625,500
≤ 90.00%
0.45%
0.45%
≤ $625,500
> 90.00%
0.70%
0.70%
> $625,500
≤ 90.00%
0.70%
0.70%
> $625,500
> 90.00%
0.90%
0.90%

 

Weeks ago Fannie Mae announced its own 3% down payment program targeting first time home buyers.  It is a direct competition against FHA’s 3.5% down pay program.