September 3rd, 2017 9:31 AM by Eric Rittmeyer
On 8/29/17, FHA announced some major changes to the Federally Insured HECM program. All HECM loans with case numbers assigned on or after 10/2/17, will be susceptible to these new guidelines. Amongst the changes were a change to the upfront mortgage insurance premium (MIP), a decrease in the annual/ongoing MIP, and a decrease in the Principle Limit Factors (LTV). To summarize, the upfront MIP is now going to be 2% of the appraised value, the annual/ongoing MIP will be .50% of the loan balance, and the new Principle Limit Factors (LTV's) will see an approximate 10-20% reduction. These changes were announced with no prior warning or notification from FHA. The change to likely have the largest negative impact on potential HECM borrowers is the LTV reduction.
Please contact Eric Rittmeyer at (410) 668-6501 or firstname.lastname@example.org for more information