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FHA Financing – Mortgage Insurance Premiums

When it’s time to buy a home many home buyers, especially first time home buyers, like to utilize FHA financing because FHA allows for a very low down payment of 3 ½%. Since the the down payment is so low they must pay for additional mortgage insurance which means premiums will need to be applied. Basically, the buyer must pay the insurance to make up for the difference.

The current monthly mortgage insurance premium that is attached to each and every FHA loan is often changing but the figures listed below have been updated as of 12/4/18. The percentage translates to the total monthly payments over the course of the loan. The higher the amount of the loan, the more the monthly premium will cost. Even with the premium increases we’ve experienced in the past, FHA financing is still a wonderful option for any home buyer, as long as they plan to use the property for their primary residence.

NOTE: First time condo buyers sometimes become a bit frustrated trying to find a suitable condo in a complex that is already approved for FHA financing. We’ve made life much easier by providing you with an up to date list, including links to listings in ALL Santa Clarita condo complexes that are pre approved for FHA financing.

Our preferred lender, Keith Renno of Wintrust Mortgage provides us with updated information for FHA financing and mortgage insurance premiums.

See below are the Mortgage Insurance Premiums as of December 2018

Keep in mind, the amounts are always changing however this will at least get you thinking about the type of questions to ask your lender when using FHA financing.

Mortgage Insurance for FHA Loans

  • 15-year loan terms with loan-to-value over 90% : 0.70 percent annual MIP
  • 15-year loan terms with loan-to-value 90% and under : 0.45 percent annual MIP
  • 15-year loan terms with loan-to-value over 90% Loan Amount greater than $625,500: 0.95 percent annual MIP
  • 15-year loan terms with loan-to-value over 78% up to 90% Loan Amount greater than $625,500: 0.70 percent annual MIP
  • 15-year loan terms with loan-to-value 78% and under Loan Amount greater than $625,500: 0.45 percent annual MIP
  • 30-year loan terms with loan-to-value over 95% : .85 percent annual MIP
  • 30-year loan terms with loan-to-value 95% and under : .80 percent annual MIP
  • 30-year loan terms with loan-to-value over 95% Greater than $625,500 : 1.05 percent annual MIP
  • 30-year loan terms with loan-to-value 95% and under Greater than $625,500 : 1.00 percent annual MIP

General Conventional MI Rates (Assuming 760+ scores)

  • 15-year loan terms with loan-to-value 97% to 95.01% .37%
  • 15-year loan terms with loan-to-value 95% to 90.01% .30%
  • 15-year loan terms with loan-to-value 90% to 85.01% .24%
  • 15-year loan terms with loan-to-value 85% and under .18%
  • 30-year loan terms with loan-to-value 97% to 95.01% .55%
  • 30-year loan terms with loan-to-value 95% to 90.01% .41%
  • 30-year loan terms with loan-to-value 90% to 85.01% .30%
  • 30-year loan terms with loan-to-value 85% and under .19%

Planning to use FHA Financing to Buy a Home Soon?

If you’re thinking about buying a home, contact us today at 661-713-4799! We’ll get you set up with Keith Renno for a quick pre-qualification and a follow up for a pre approval.

Even repeat buyers that have the ability to put 20% down and obtain a conventional loan, still like the FHA financing because it allows them to keep a good amount liquid and a low long term fixed rate.

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