HUD Announces Changes to FHA Loans



On Jan. 30, 2013, the Federal Housing Administration’s (FHA) Commissioner Carol Galante announced a series of changes to be issued this week that manage risk and further strengthen the heath of FHA’s Mutual Mortgage Insurance Fund (MMI Fund):

  1. The Standard Fixed-Rate Home Equity Conversion Mortgage (HECM) and Saver Fixed R.ate HECM pricing options will be consolidated.  This change will be effective for FHA case numbers assigned on or after April 1, 2013. Please see Mortgagee Letter 2013-01.
  2. The annual mortgage insurance premium (MIP) for most new mortgages will increase by 10 basis points, or by 0.10 percent.  Premiums on jumbo mortgages ($625,000 or larger) will increase by 5 basis points, or 0.05 percent.  These premium increases exclude certain streamline refinance transactions.
  3. FHA will require most FHA borrowers to continue paying annual premiums for the life of their mortgage loan.  Please see Mortgagee Letter 2013-04.
  4. Lenders will have to manually underwrite loans for borrowers with a decision credit score below 620 and a total debt-to-income (DTI) ratio greater than 43 percent.
  5. Downpayment requirements for mortgages with original principle balances above $625,500 will be raised from 3.5% to 5%.  A federal register notice will be published the first week in February.
  6. Greater oversight will be required on borrowers who are trying to obtain a new FHA loan 3 years following a foreclosure.

About Michelle Nantz

There are many qualities and skills that go into being an excellent real estate professional: integrity, in-depth community and market knowledge, marketing savvy, effective negotiation skills, and a high-quality professional network ~ all of which are hallmarks of Michelle Nantz. In 2003, Michelle began her career in real estate, after a successful career in restaurant and hotel management with her last position as Regional Director of Operations running 56 hotels throughout two states. She owes her success in real estate and management to her expertise in people skills, managing, negotiating, and follow-up. However, it is Michelle’s dedication to quality service that she ultimately credits her success. Michelle shared, “In my experience as a Lake Norman real estate professional, I’ve found that providing the very best service is essentially about putting my clients first. This means keeping myself accessible, being a good listener as well as a good communicator, and responding quickly to their needs.” This “client first” philosophy combined with continual personal improvement and keeping up-to-date with the latest technologies is a cornerstone of both Michelle’s and Lake Norman Realty’s business philosophy. In addition to Michelle’s extensive real estate education and her experience in the local market, she is also an Accredited Staging Professional®, which brings additional value to marketing her clients’ homes. Michelle and her family have made the Lake Norman area their home for over 10 years. In her rare leisure moments, you’ll find Michelle with her three children and husband, or unwinding with gardening or reading. “I live and work in this community and only have the best interests of our community and its members in mind,” says Michelle. Her community activities include participation in Denver Days, Relay for Life and support for Christian Ministries and area schools.
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