Here is great news for anyone looking to apply for a VA or FHA mortgage: the Federal Housing Administration (FHA) has reduced annual mortgage insurance premiums (MIP), and certain VA mortgage funding fees have also been reduced.
Homeowners Can Save With Lower FHA MIP
Beginning on March 20th, 2023, the FHA monthly mortgage insurance premium (MIP) has been reduced by 30 bps.
Over the year ahead, this reduction in FHA MIP should help an estimated 850,000 borrowers to save $678 million collectively. Keep in mind that is just over the next year.
What do these savings look like for an individual borrower? HUD writes, “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.”
Reduced Funding Fees Make Some VA Mortgages More Affordable
Now let’s take a look at the lower funding fees for some VA home loans. These reduced fees apply to mortgages that close on or after April 7th, 2023 and before November 14th, 2031:
These reduced funding fees only apply to VA mortgages that are used for home purchase or construction, not for refinance. Borrowers must be making a 5% or more down payment in order to access these reduced funding fees.
During your consultation, we can discuss your needs, and I can help you figure out whether you are eligible for the reduced funding fees based on the details of the VA mortgage for which you are applying.
Apply Now for a VA or FHA Mortgage in San Diego
Are you ready to take advantage of reduced FHA MIP or lower VA mortgage funding fees? I can help you apply quickly and easily for either of these types of home loans. Please give me a call at (619) 857-7191 to schedule your consult.
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