Mortgage Insurance Rates Increasing on Kentucky FHA Loans
FHA Mortgage Insurance Rates Will Be Going Up on All New Kentucky FHA Loans Assigned April 9, 2012 and After.
- Low Down Payment – as low as 3.5% of the purchase price of the home
- Low Closing Costs – closing costs, mortgage insurance and other fees can be included in the loan
- Easier Credit Qualifications – those who don’t have the credit score or history to qualify for a conventional loan may qualify for FHA financing
|New FHA Loan|
(After April 1, 2012)
|Old FHA Loan|
(March 31, 2012 or prior)
|Down Payment %|
|Down Payment Amount ($)|
|Up Front Mortgage Insurance Rate|
|Mortgate Insurance Rate|
|Other (HOA Dues)|
|Total Monthly Payment|
- 30 Year Loan Term – must pay the monthly insurance premium for a minimum of 60 months (5 years) and the loan must reach 78% loan-to-value (LTV) as a result of paying the loan down (amortization). LTV is not determined by the new home value, it’s determined by the original sales price of the home. LAYMAN’S TERMS: If your original sales price was $100,000 – multiply that by 78%. You need to get your mortgage balance down to $78,000 before FHA will allow you to drop the PMI.
- 15 Year Loan Term – there is NO requirement that MIP be paid for 60 months but the LTV must be 78%. LTV is based on paying the loan balance down, you calculate this the same way you do for a 30 year mortgage. Remember, this is NOT based upon the current appraised value or the current tax value of the house.
Senior Loan Officer
phone: (502) 905-3708
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