It’s Official: FHA Hike of 75bps Will Come April 1.
The Federal Housing Administration is following through with its pledge to increase upfront and annual insurance premiums on its forward single-family business. The plan is to help rebuild it’s insurance emergency fund which has taken a hit over the last few years during the housing collapse (FHA has paid out nearly $37 billion in defaulted mortgages since 2008).
Unveiled late Monday, the increases are designed to strengthen FHA’s capital position and “have minimal impact on the market and borrowers,” according to FHA acting commissioner Carol Galante. She noted that FHA streamline refinances are exempt from these premium hikes.
Starting April 1, FHA will hike its upfront premium by 75 basis points to 175 bp on all single-family loans, including jumbos.
FHA is also hiking the annual premium on loan balances of up to $625,500 on April 1. On higher balance loans or jumbos, FHA is planning to implement a 35-bp hike in the annual premium on June 1.
The federal mortgage insurance agency currently charges a 115 bp annual premium when the loan-to-value ratio is above 95%.
Mid Coast Hunger Prevention Program’s fund raiser and hunger awareness event will find hardy volunteers braving the cold from 10 a.m. Saturday, February 18, until 10 a.m. Sunday, February 19, at Cook’s Corner Mall.