It isn't very often one of my clients looking for a home in one of our Phoenix Arizona active retirement communities is planning on purchasing home using an FHA loan. In fact it is rare.
But we all know people who may be affected by the changes coming from FHA. The following information came from one of my favorite mortgage people.
In a letter written yesterday by the FHA Commissioner, David H. Stevens, it was announced that with the passage of H.R. 5981, FHA has the authority to adjust its annual mortgage insurance premium. FHA intends to decrease the upfront mortgage insurance premium from 2.25% to 1.00% and increase the monthly mortgage insurance from 0.55% to between 0.85% - 0.90% on amortization terms greater than 15 years.
FHA plans to implement this change effective with all case numbers assigned on or after Tuesday, September 7, 2010. * (FHA Case Number: Unique 10-digit number assigned to a loan through Case Number Assignment on the FHA Connection. A loan assigned a number is called a case).
Please note: The net effect to a borrower who is requesting maximum financing allowed under FHA is an increase in their monthly payment of approximately $22 per $100,000 borrowed at today's interest rates.
Getting under contract NOW will save you money!!!! Upon acceptance of contract, contact your Lender immediately to assure the case number gets ordered promptly.
If you are in the market to buy or sell a home in one of the Phoenix west valley active retirement golf communities, please call me or visit my website. Here you will also find information on homes for sale in Sun City Grand, resales in Corte Bella, Sun City Festival real estate, Arizona Traditions MLS listings, Trilogy at Vistancia and Sun City West, PLUS see a map of the Surprise AZ area retirement communities. Don't hesitate to call or email if you have questions.
Ken Meade Realty
Sun City Grand Office