Friday, January 13, 2012

Kentucky FHA Mortgage insurance 2012 requirements

When Mortgagee Letter 2011-10 was issued, it did not address forward mortgage amortization terms of 15 years or less when the loan-to-value (LTV) ratios at loan origination are at 78 percent or less. Currently the annual MIP is canceled for mortgages with amortization terms of 15 years or less when the LTV reaches 78 percent. Therefore, this Mortgagee Letter confirms that Annual Mortgage Insurance Premiums are not charged for all forward mortgages with
Amortization terms of 15 years or less, and
LTVs at or below 78 percent at the time of origination

 HUD Handbook 4155.2 will be updated to reflect that the annual MIP terminates for mortgages with amortization terms of 15 years or less when the LTV reaches 78 percent and that no annual MIP is charged when the initial LTV for such mortgages is at or below 78 percent. There are no other changes to the Annual Mortgage Insurance Premiums, and there are no changes to the Upfront Mortgage Insurance Premium (UFMIP).
The chart below is effective for case numbers assigned on or after April 18, 2011 for forward mortgage amortization terms.


Mortgage Insurance Premiums





The chart below is effective for case numbers assigned on or after April 18, 2011 for forward mortgage amortization terms. Mortgage Insurance Premiums

Loan Terms > 15 years

UFMIP = 100 basis points (bps)
Annual Premium



≤ 95.00 percent
85 bps
110 bps

> 95.00 percent
90 bps
115 bps

Loan Terms ≤ 15 years

UFMIP = 100 bps
Annual Premium

≤ 78.00 percent
None
None

78.01 percent - 90.00 percent
None
25 bps

> 90.00 percent
25 bps
50 bps











Fill out my form for your free prequalification for a FHA Kentucky Mortgage by clicking here!