FHA Mortgages

For the second time in 4 months, the FHA is changing the way it charges mortgage insurance. The change is forcing homeowners and home buyers using FHA financing to make a monetary decision -- use the current system for FHA mortgage insurance, or to wait for the new one to take effect? The answer roots [...]

Life as an FHA borrower is getting tougher. In an effort to shore up its flailing balance sheet and dwindling capital reserves, the Federal Housing Authority is rolling out sweeping financial changes. FHA borrowers have to look better on paper and be better credit risks. Mortgage insurance premiums are rising, too.

Life as an FHA borrower is getting tougher. In an effort to shore up its flailing balance sheet and dwindling capital reserves, the Federal Housing Authority is rolling out sweeping financial changes. FHA borrowers have to look better on paper and be better credit risks. Mortgage insurance premiums are rising, too.

This is a snippet from page 348 of the Special Topics sub-section in the 2011 Congressional Budget. It recaps the new FHA mortgage insurance guidelines for case numbers assigned after April 5, 2010. It also shows the FHA's request to have authority over its mortgage insurance premiums from Congress. According to the highlighted text, the FHA wants make two changes, pending congressional approval.

Life as an FHA borrower just got tougher. In an effort to shore up its flailing balance sheet and dwindling capital reserves, the Federal Housing Authority rolled out sweeping financial changes this morning. FHA borrowers must now look better on paper and have more cash at closing. Mortgage insurance premiums are rising, too.

Want to refinance on the FHA Streamline Refi program? Better get a move on. Beginning in just 5 days -- November 17, 2009 -- the FHA changes over to new guidelines for its popular FHA-to-FHA refinance program. Getting approved for a Streamline Refi will be more difficult and more expensive.

FHA mortgage rates are lower than conventional mortgage rates right now. It's an interesting development, especially for homeowners and home buyers with low equity. Unless you've got 20 percent into a property, if you're locking a 30-year fixed rate mortgage, there's compelling reasons to go FHA.

With foreclosures proliferating, PMI defaults are up 26 percent over last year and double the levels from 2007. Private mortgage insurers are paying out on many more claims than was expected and, as a result, are booking huge losses. Homeowners are about to pay the price. To shore up balance sheets and protect against future losses, mortgage insurers have raised insurance rates and toughened underwriting guidelines.

Want to refinance on the FHA Streamline Refi program? Better get a move on. Beginning in just 4 weeks -- November 17, 2009 -- the FHA changes over to new guidelines for its popular FHA-to-FHA refinance program. Getting approved for a Streamline Refi will be more difficult and more expensive.

The FHA is changing the FHA Streamline Refinance rules. Effective January 1, 2010, getting approved for the popular refinance program will be decidedly more difficult. And make note -- this is not speculation. The FHA titled its official statement dated September 18, 2009 "Revised Streamline Refinance Transactions" and it reads like a warning shot. This is just the first in a series of changes coming from the FHA.