New FHA Loan Changes You Need to be Aware of!


pig in money

FHA loan changes you need to be aware of!  Read below to see what could happen to your hard earned money due to new FHA guidelines effective April 1, 2013. 

According to Mike Dunsky, Senior Vice President of Mortgage Lending with Guaranteed Rate, the FHA has just made the following announcement:

As of April 1, 2013, FHA will be increasing their fees AND will be requiring all future FHA loans to carry the monthly mortgage insurance for the life of the loan.

•        An increase in annual mortgage insurance premiums (MIP) on most mortgages by 10 basis points or 0.10 percent. Premiums on jumbo mortgages with balances of $625,000 or larger will increase by 5 basis points or 0.05 percent. This will bring jumbo mortgage premiums up to the maximum premium authorized by Congress. These premium increases exclude certain streamline refinance transactions.

•          FHA will reverse its existing policy of cancelling MIP on loans when the outstanding principal balances reached 78 percent of the original balance. Because FHA remains obligated to insure 100 percent of the outstanding loan balance for the life of the loan, homeowners will now be required to maintain principal payments over that period as well. FHA’s Office of Risk Management and Regulatory Affairs estimates that the MMI Fund has foregone billions of dollars in premium revenue on mortgages endorsed from 2010 through 2012 because of this automatic cancellation policy.

These are significant and costly changes that could impact your buying power.   Find out what you can do to avoid taking an FHA loan and/or what your other options are by contacting Mike Dunsky with Guarenteed Rate at 508-245-0705 or contact your local mortgage consultant.

The market has changed.  Due to the lack of inventory and increased pent up demand, the sellers are back in the driver’s seat.  If you’re a buyer who has been waiting for just the right time to buy, don’t wait another minute.  Rates are still low and prices of homes will start going up if they haven’t done so already where you live.  Now really is the time to buy.  Don’t let changing policies take more money out of your piggy bank.


Susan Morrison –  Realtor
RE/MAX Executive Realty 445 Franklin Village Drive  Franklin, MA 02038
 617-686-8178; cell  508-319-3125; efax




About susanmorrison

After living in Walpole, MA for many years, our family was transferred to the west coast when I was a senior in high school. In 1983, I graduated from Mission San Jose High School in Fremont, California. I am also a 1987 graduate of Providence College with a major in liberal arts and a minor in business administration. I bring to the table many years of sales experience beginning with thirteen years in Corporate Sales at Delta Air Lines. I'm the mother of three children and I'm very active within the Franklin, MA community. I am also a cancer survivor and support the American Cancer Society Charities.

My husband and I have built five homes and I've lived in a variety of other locations including Toronto Canada, Irving Texas and my current home in Franklin, MA. As a result of all my moving around, I came to the conclusion that I was an expert at moving...why not become an expert on the other side of the table? I earned my real estate license in 2004 and believe that I have found my true niche'. I can empathize with my clients on a variety of levels; whether they are buying or selling. And, like so many other good realtors out there, I believe that possessing good communication skills is one of the many keys to success.

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