If you are going to be applying for a VA or FHA mortgage, you will be happy to learn that FHA MIP and certain VA funding fees are decreasing. Below, you can find the full details.
FHA MIP Reduced
For starters, monthly mortgage insurance premiums (MIP) are decreasing by 30 bps for loans backed by the Federal Housing Administration (FHA). This change is effective as of March 20th, 2023.
This change in mortgage insurance premiums will help around 850,000 projected borrowers to save an amount that is expected to add up to about $678 million collectively.
HUD says, “For the same borrower with a mortgage of $467,700 – the national median home price as of December 2022 – FHA’s annual MIP reduction will save them more than $1,400 in the first year of their mortgage. In addition to providing overall savings to borrowers, a lower annual MIP can also help more people qualify for a mortgage.”
Some VA Loan Funding Fees are Lower
More good news on the government-backed mortgage front concerns VA loans, specifically those for purchase or construction (not refinancing). The funding fees for some of these loans are reducing.
This only applies to mortgages that close on or after April 7th, 2023 and before November 14th, 2031. Also, you must put 5% or more down when you take out your mortgage; otherwise, you will not be eligible for these reduced VA loan funding fees.
Apply for a VA Loan or FHA Mortgage Now
Have more questions about these changes, or ready to apply for a VA or FHA mortgage? Please give us a call now at (248) 788-0800 to schedule your free consultation. We can help you buy a home in Michigan or 15 other states with a flexible, affordable home loan.
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