Mortgage Blog

Potential Naples FHA Changes in 2013

Naples, Florida FHA home loan program changes

For those who are considering buying a home, it may be prudent to consider purchasing now and locking in your loan guarantee before 2013.  Unfortunately, if you wait until 2013, you may be paying a higher fee for a standard FHA approved loans.  According to naples-fha-150x150.jpg

Understanding the recommendation

It is important to understand this proposal does need to be approved by Congress and the Senate. However, some of the changes could impact consumers negatively. The Naples FHA provides insurance to lenders that is funded by charging borrowers a surcharge known as monthly mortgage insurance premium (MIP). Because of the recent calamity in the housing market, the FHA is estimating a significant deficit in meeting their existing obligations.  In fact, it is estimated that losses during the housing crisis have totaled as much as $70 billion.

What it means for consumers

While the proposal still must be reviewed, if approved there are several steps that the FHA may be taking that impact homeowner’s who have an existing FHA insured mortgage as well as new mortgage holders.  Some of the things you may need to watch include:

  • New Borrowers – new homeowner’s will be facing a surcharge of ten basis points on monthly mortgage insurance. This will increase the cost of the insurance about $13 per month;
  • Existing homeowners – an existing homeowner who may be on the cusp of being eligible to remove MIP from their mortgage may find that their lender has changed the terms. Currently, when a homeowner has paid down their mortgage so that they owe less than 80 percent, they may be eligible to be removed from the MIP program. However, the new rules may not allow this to occur.
  • Homeowner’s with upside down loans – part of the good news in this recommendation is those borrowers who have an upside down mortgage may get additional assistance from the FHA. The FHA streamline program is a good example of the types of programs being offered currently. However, for a borrower who has an underwater mortgage and is delinquent, the news may not be so welcome. This is because the FHA is considering auctioning these loans to investors. The investor will then have the option of foreclosing on the property  or will follow the FHAs recommendation and work with families to keep them in their homes.naples-fha-loan-150x150.jpg

For all current homeowners and potential homeowners, these recommended changes have some financial impact. If you are considering buying a home or refinancing your mortgage, you may be able to avoid these higher costs by seeking financing today rather than waiting for these changes to take place. Contact Core Mortgage Financial if you have any questions or concerns and let us help you with your purchase or refinance mortgage. We have Naples FHA home loans available for purchase and refinance transactions.

Apply for a Naples FHA mortgage or call 239-431-5889. Alternatively, since our main office is here in Naples you can come in to see us.

 

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