Recent changes to FHA MIP and certain VA funding fees have made both of these types of home loans even more affordable than they were before. In this post, we will go over what you need to know if you are applying for either of these government-backed mortgage programs.
FHA MIP Will Now Be More Affordable
The Federal Housing Administration (FHA) has announced that monthly mortgage insurance premiums (MIP) are decreasing by 30 bps for FHA home loans. This change will take effect as of March 20th, 2023.
When you add together the amount of money that will be saved collectively by around 850,000 borrowers over the next year, it amounts to about $678 million.
HUD states, “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.”
Certain VA Funding Fees Decreasing
For VA mortgages that close on or after April 7th, 2023 and before November 14th, 2031, funding fees are being reduced.
These reductions in funding fees are for home purchase or construction only. They do not apply if you are refinancing an existing home loan. You also can only qualify for the reduced funding fees if your down payment will be 5% or more.
Apply Now for a VA or FHA Mortgage in Florida
We make it fast and easy to apply for a VA or FHA mortgage. To get started, please call us now at 954-840-8811 to schedule your consult. We can work with you in Fort Lauderdale or anywhere in FL.