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 20^th, 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 7^th, 2023 and before November 14^th, 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.

What Features and Benefits Does the MMS Special FHA Loan Program Offer?

• We accept a minimum credit score of 580. Most lenders require a score of at least 600-620. So, this opens up our niche FHA loan program to a wider range of prospective applicants.
• First time and repeat homebuyers are welcome to apply for this FHA loan program.
• You may use this type of mortgage to buy a primary residence. Types of properties allowed include single family homes, condos, manufactured homes, and 2-4 unit properties. It is very rare to find financing for 2-4 units, so this is a great benefit for our special program.
• DACA borrowers can qualify for our Special FHA Loan Program.
• There is no income cap on this program. No matter how much you earn, you can move into a home with zero down.
• We also allow non-occupying co-borrowers. So, conversely, if you need more income to buy a home, you can have someone cosign on your mortgage.

Buy A Home in Farmington Hills with MMS Mortgage Services

The bottom line is that this is an extremely flexible, versatile program that can fit a wide range of needs. You can find out more about the MMS Special FHA Loan program in our Facebook Live video. Please contact MMS Mortgage Services at (248) 788-0800 to schedule your consultation. We work with clients in Farmington Hills, throughout Michigan and beyond!