As of Today – FHA Mortgage Insurance Premiums Increase .25
How will this FHA change effect your Columbus Home Buying Experience?
How will this effect your Columbus Home Buying experience? Well, if you’re purchasing your home with an FHA loan, this higher MIP will take away, on average, approximately $5000 of buying power.
New premium structure for 30- and 15-year loans will help private capital return
WASHINGTON – As part of ongoing efforts to strengthen the Federal Housing Administration’s (FHA) capital reserves, FHA Commissioner David H. Stevens today announced a new premium structure for FHA-insured mortgage loans increasing its annual mortgage insurance premium (MIP) by a quarter of a percentage point (.25) on all 30- and 15-year loans. The upfront MIP will remain unchanged at 1.0 percent. This premium change was detailed in President Obama’s fiscal year 2012 budget, also released today, and will impact new loans insured by FHA on or after April 18, 2011.
“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said Stevens. “This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”
The proposed change was announced last week as part of the Obama Administration’s report to Congress, which outlined the Administration’s plan to reform the nation’s housing finance system. The Administration’s housing finance plan also recommended that Congress allow the present increase in FHA conforming loan limits to expire as scheduled on October 1, 2011.
This premium change enables FHA to increase revenues at a time that is critical to the ongoing stability of its Mutual Mortgage Insurance (MMI) fund, which had capital reserves of approximately $3.6 billion at the end of FY 2010. The change is estimated to contribute nearly $3 billion annually to the Fund, based on current volume projections. It is vital that HUD take action to ensure that FHA will continue to serve its dual mission of providing affordable homeownership options to underserved American families and first-time homebuyers while helping to stabilize the housing market during these tough times.
On average, new FHA borrowers will pay approximately $30 more per month. This marginal increase is affordable for almost all homebuyers who would qualify for a new loan. Existing and HECM loans insured by FHA are not impacted by the pricing change.
FHA will continue to play an important role in the nation’s mortgage market in 2011. President Obama’s FY 2012 budget projects the FHA will insure $218 billion in mortgage borrowing in 2012. These guarantees will support new home purchases and re-financed mortgages that significantly reduce borrower payments.
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Italian Village Spring Fling Open House Event! OPEN TODAY! 659 Kerr 1-3 PM
In addition, Eight other Italian Village homes for sale will be open this afternoon. Stop by and look at all of them. Aside from 659 Kerr, be sure to look at 141 E. Third Ave–a two bedroom warehouse loft home unique to Columbus.
Open House Flyer – Spring Fling (1)
Click Above for a list and description of all of today’s Italian Village Open Houses.
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Looking for a Home in Bexley, Eastmoor or Berwick?
But Sunday Open Houses just don’t work for you?
Fret not, the Third Thursday Open House Extravaganza is back! Starting April 21, Real Estate Agents with homes for Sale in Bexley, Eastmoor and Berwick will hold open houses after work from 5-7.
Here is a list of what’s open next Thursday:
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If the Government shuts down, will Columbus Real Estate follow?
What is a Government shutdown’s impact on real estate? As it turns out, not too much…
WASHINGTON – April 7, 2011 – The federal government may or may not shut down after Friday. Lawmakers have drawn a line in the sand and, as of today, it appears they won’t reach agreement by the current deadline of budgeting. However, that could change. Or lawmakers could agree to extend the budget by only another week or two to give themselves more time to negotiate. Or lawmakers could surprisingly pull out a budget agreement at the last minute.
If the government does shut down, it won’t impact all federal programs equally. A specific impact depends on whether the agency is privately funded, semi-separate from the government, and other factors. Even insiders aren’t sure what will happen if the government shuts down.
However, the National Association of Realtors issued a list of likely scenarios on how Realtors may be impacted if the federal budget fails to pass:
Federal Housing Administration (FHA)
FHA cannot offer endorsements for any new loans in the Single Family Program and cannot make commitments in the Multi-family Program in the event of a shutdown. FHA will maintain operational activities including paying claims and collecting premiums. Management and marketing contractors managing the REO portfolio can continue to operate.
VA Loan Guaranty Program
Lenders may continue to process and guarantee mortgages through the Loan Guaranty program.
Flood Insurance
The Federal Emergency Management Agency (FEMA) confirmed that the National Flood Insurance Program (NFIP) would not be impacted by a government shutdown.
Rural Housing Programs
The U.S. Department of Agriculture’s field staff is not considered essential personnel, and only essential personnel continue to work during a government shutdown. As a result, the people who typically issue conditional mortgage commitments, loan note guarantees, and modification approvals will not be able to do so, and lenders will not receive approvals during the shutdown.
However, a lender that already received a conditional commitment from the Rural Development office may proceed to close those loans during the shutdown. A conditional commitment, good for 90 days, is given to a lender once a USDA underwriter approves the loan. If a commitment was issued, funds were set aside at that time, and the lender may still close the loan at its leisure.
Fannie Mae and Freddie Mac
The Government Sponsored Enterprises will continue operating normally, as will their regulator, the Federal Housing Finance Agency. Fannie Mae and Freddie Mac back over half of all mortgages originated in the U.S.
Treasury
No official word as of yet, but the Making Home Affordable program, including HAMP and HAFA, may not be affected since the program is funded through the Emergency Economic Stabilization Act, which is mandatory spending and not discretionary.
Internal Revenue Service (IRS)
Should the federal government shut down, the IRS cannot process federal income tax returns or issue refunds. If a buyer expects a refund and hopes to use it toward a downpayment, the closing may have to wait.
© 2011 Florida Realtors®
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How Does Franklin County Arrive at Your Home’s Value?
Click here to download or open a short PowerPoint presentation from the Auditor’s office about how Franklin County – or really most any county in Ohio – figures out how much your home is worth so that they can then figure out how much tax you should be paying on your home. > caao-yourhomeyourvalue-07-08
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