If you are thinking about buying and you are thinking about getting an FHA loan, it can be a great option. You can put as little as 3.5% down and most closing costs and fees can be included in the loan. If you are putting less than 20% down you have to pay MIP, monthly insurance premiums. As of April 18th, that amount is increasing. It is a fairly significant increase. On a $150,000 house with 3.5% down, the additional MIP will be $31 a month.
This doesn’t mean that FHA isn’t a great loan… it is! All it means is that if you are on the fence about buying, it is an advantage to buy before April 18th.
There is also an upfront MIP fee and that is not changing. It remains 1% of the loan amount.
If you have any FHA or other mortgage questions, just let us know. We are here to help!
-Betsy, Atkinson-Thompson Group