January 18, 2018

FHA Loan Losses May Trigger Taxpayer Bailout and Higher FHA Insurance Premiums For Borrowers

Due to increased loan losses on FHA insured mortgages, borrowers may soon be facing an increase in FHA insurance premiums. In testimony before Congress, Shaun Donovan, Secretary of the U.S. Department of Housing and Urban Development (HUD), stated that due to an almost total depletion of the FHA Mortgage Insurance Fund, it may become necessary […]

How To Get An FHA Loan Without Mortgage Insurance

The FHA loan program currently offers lower down payments, easier borrower qualification and lower rates than conforming loans.  The offset to these benefits is the imposition of an upfront mortgage insurance premium (UFMIP) and continuing monthly mortgage insurance (MI) premiums. The combined UFMIP and monthly MI payments represent a major cost to an FHA borrower.  […]

FHA Mortgage Insurance Compared To Private Mortgage Insurance (PMI)

FHA financing remains the only mortgage option available to many borrowers able to make only a minimal down payment for a new home.  Offsetting this advantage, however, is the high cost of FHA mortgage insurance . Due to a large number of loan defaults, the FHA was recently forced to raise monthly mortgage insurance premiums […]

FHA Mortgage Insurance Very Costly For Borrowers

FHA mortgage insurance is charged to borrowers to cover the cost of losses on defaulted mortgages.  The annual premium paid by a  borrower on an FHA loan has become very costly, amounting to thousands of dollars a year for many borrowers. Effective April 18, 2011, the the annual FHA mortgage premium was increased as the […]

FHA Mortgage Insurance – What Is It For And Why Does It Exist?

FHA mortgage insurance (MI) is an essential element of the FHA lending program.  Mortgage insurance provides an incentive for lenders to approve FHA loans and is instrumental in protecting the financial integrity of the FHA lending program by covering loan losses. The most common questions regarding FHA mortgage insurance are answered on the website of […]