Less than two weeks remaining before FHA mortgage insurance premiums jump higher

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If you are considering an FHA mortgage, you have less than two weeks to obtain an FHA case number at our current FHA mortgage insurance premiums.  Effective April 9, 2012, HUD is increasing the cost for FHA insured mortgages for purchases, FHA refinances and many FHA streamlined refinances that were endorsed after May 31, 2009.

NOTE: Some borrowers doing an FHA streamlined refinance may be eligible for reduced rates and should hold off on their streamlined refi – please check with your local mortgage originator to see if this applies to you.

Mortgage originators can only provide an FHA case number if they have a bona fide transaction, including a complete loan application. Borrowers in the process of obtaining FHA financing should confirm with their mortgage originator that they indeed have an FHA case number. I recommend you ask your mortgage originator for your case number.  

 Borrowers who are barely qualifying with higher debt to income ratios may find they qualify for less with FHA mortgage payments increasing.  If you are currently preapproved with FHA financing, double check with your lender to make sure you still qualify for the same loan amount and sales price once the increased mortgage insurance premiums go into effect.

FHA borrowers with "high balance" loan amounts will be whammo'd again as HUD increases their mortgage insurance premiums again effective for case numbers issued on or June 11, 2012.  In the greater Seattle area, this would be FHA loan amounts from $417,001 to $567,500.

Here's a link to 2012 FHA loan limits in Washington State.

If you've been considering an FHA streamlined refi – please do not assume that because your loan closed prior to May 31, 2009 that it was endorsed by May 31, 2009. Sometimes it may take a couple months for HUD to endorse (insure) the FHA loan. It's possible that you may have closed in March of 2009 and HUD may not have endorsed it until June, 1 2009 or later, making this loan not eligible for the reduced FHA mortgage insurance rates.

If you are interested in an FHA mortgage (or just about any home loan!) for your home located in Washington, I'm happy to help you!  I have been originating mortgages, including FHA, at family owned and operated Mortgage Master Service Corporation for the last 12 years.  

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