February 22nd, 2023 4:04 PM by Richard Sardella MLO.100007700/NMLS 233568
Today, the Housing of Urban Development (HUD) released Mortgagee Letter (ML) 2023-05 announcing the reduction of Federal Housing Administration (FHA) annual Mortgage Insurance Premium (MIP) rates. The ML reduces the rate for annual MIP, effective for loans endorsed on or after March 20, 2023. Most loans will see a 30 bps reduction in annual MIP, while larger balance loans will see an even greater reduction.
Contact Colorado Home Mortgages today at 303-471-4445 or www.CoMtgs.com for information on how this will assist first time homebuyers needing a little extra help. This now makes FHA's lower interest rates, compared to conventional, and mortgage insurance a more competitive option for buyers with credit scores under 740, even with just a 3.5% down payment.