We are pleased to inform borrowers that recent changes to MIP for FHA loans and funding fees for some VA loans are making these government-backed mortgage products even more affordable.
The FHA Announced Lower MIP
For mortgages backed by the Federal Housing Administration (FHA), monthly mortgage insurance premiums (MIP) are decreasing by 30 bps. The change will go into effect on March 20th, 2023.
Around 850,000 borrowers are projected to benefit from this change within the next year alone. The amount they will save collectively is expected to sum up to around $678 million.
HUD says, “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.”
VA Funding Fees for Some Mortgages are Decreasing
This is not the only good news for borrowers looking to purchase a home with a government-backed loan. Those who qualify for VA mortgages will be delighted to learn that funding fees are being reduced for mortgages that close on or after April 7th, 2023 and before November 14th, 2031.
Borrowers must put down 5% or more to qualify for the reduced VA mortgage funding fees. They are only for purchase or construction, not refinance.
Apply for a VA Loan or FHA Loan in WA or CO Now
If you are ready to buy a home with an affordable VA or FHA mortgage, we can walk you quickly and easily through applying. To get started, please call us now at (206) 352-6453 to schedule your consult. We can work with you anywhere in Washington State or Colorado.