Lower Mortgage Insurance Premiums on Kentucky FHA loans in 2023
FHA JUST LOWERED ITS MONTHLY MORTGAGE INSURANCE PREMIUM REQUIREMENT BY 30 BASIS POINTS – FROM 0.85% to 0.55%!On February 22, 2023, HUD announced a 30 basis point MIP reduction on certain Kentucky FHA loans. According to the government agency, an estimated 850,000 borrowers could benefit this coming year, and the average Kentucky FHA homeowner will save $800 annually.
FHA – Annual MIP Reduction
The Federal Housing Administration (FHA) has announced, effective for case numbers endorsed on and after 03/20/2023, a 30 basis point reduction in the annual premium charged to mortgage borrowers.
The cut, widely anticipated by the industry, will result in mortgage insurance premiums (MIP) of 55 bps for most borrowers, down from 85. The reduction also amends the Base Loan amount threshold used to establish MIP rates to the national conforming loan limit of $726,200, which increased from $625,500. Please refer to the following for the 03/20/2023 Annual Mortgage Insurance Premium MIP reduction:
- FHA Loans with Terms > 15 Years
- Base loan Amount and LTV:
- Less than or equal to $726,200
- ≤ 90.00% (50 bps) 11 years
- > 90.00% but ≤ 95.00% (50 bps) Mortgage term
- > 95.00% (55 bps) Mortgage term
- Greater than $726,200
- ≤ 90.00% (70 bps) 11 years
- > 90.00% but ≤ 95.00% (70…
- Less than or equal to $726,200
- Base loan Amount and LTV:
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