Wholesale ALERT – New FHA Annual Mortgage Insurance Premiums
Arc Home will align with the reduced FHA Annual Mortgage Insurance Premium (MIP) Rates and amended Base Loan amount thresholds announced by HUD in Mortgagee Letter 2023-05. The changes highlighted in the table below are effective immediately and for all FHA Purchase and Refinance loans, EXCEPT Simple and Streamline Refinance transactions used to refinance a previous FHA mortgage endorsed on or before May 31, 2009.
Important Notes
· There is no change to the 1.75% Upfront MIP for Purchase and Refinance transactions, including Simple and Streamline Refinance transactions used to refinance a previous FHA mortgage endorsed after May 31, 2009.
· For Simple Refinance and Streamline Refinance transactions used to refinance a previous FHA mortgage endorsed on or before May 31, 2009, the .55% Annual MIP and .01% Upfront MIP remain unchanged.
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Annual Mortgage Insurance Premium (MIP) (Purchase and Refinance, except as indicated above) |
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Mortgage Term of More Than 15 Years |
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PREVIOUS Requirement |
NEW Requirement |
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Base Loan Amount |
LTV |
MIP (bps) |
Base Loan Amount |
LTV |
MIP (bps) |
|
</= $625,500 |
</= 90% |
80 |
</= $726,200 |
</= 90% |
50 |
|
> 90% to </= 95% |
80 |
> 90% to </= 95% |
50 |
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|
> 95% |
85 |
> 95% |
55 |
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|
> $625,500 |
</= 90% |
100 |
> $726,200 |
</= 90% |
70 |
|
> 90% to </= 95% |
100 |
> 90% to </= 95% |
70 |
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|
> 95% |
105 |
> 95% |
75 |
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|
Mortgage Term of Less Than or Equal to 15 Years |
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|
PREVIOUS Requirement |
NEW Requirement |
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|
Base Loan Amount |
LTV |
MIP (bps) |
Base Loan Amount |
LTV |
MIP (bps) |
|
</= $625,500 |
</= 90% |
45 |
</= $726,200 |
</= 90% |
15 |
|
> 90% |
70 |
> 90% |
40 |
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|
> $625,500 |
</= 78% |
45 |
> $726,200 |
</= 78% |
15 |
|
> 78% to </= 90% |
70 |
> 78% to </= 90% |
40 |
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|
> 90% |
95 |
> 90% |
65 |