Good News! FHA and the Secretary of the Department of Housing and Urban Development say that they are getting all that they need to sustain the FHA Mortgage Loan program from the current FHA PMI Rate. The agency has increased premiums more than 5 times in the last 3 years, and currently offers the HIGHEST PMI premiums (when compared to all other mortgage programs).
Of course, the FHA PMI rate had to go up to cover the cost of thousands of default and foreclosed homes that it had mortgage insurance against. Shaun Donovan, the Sec of HUD said last week that the FHA PMI Fund currents has a $4 Billion dollar surplus.
This might mean that there’s enough room in the FHA PMI rate structure to allow some of the folks who purchased a home prior to the 2009 Streamline FHA “Sweet Deal” to get in on the action?
Currently, if you want to do a FHA streamline refinance of your home, with the BEST closing costs, your home to be endorsed by FHA prior to June 1, 2009. So, even if you closed, say in February of 2009 – if your loan did not get through the FHA PMI endorsement System, then you are charged the current, very high rates. (See more about the 2009 FHA Endorsement Date Issue)
There’s a movement in NC to ask FHA, HUD and Congress to change this very arbitrary 2009 FHA Streamline Endorsement date – if we hear anything positive about this – we’ll certainly keep you updated!
UPDATE: There could be good news for the FHA Streamline Refinance mortgages Endorsed After June 1, 2009
If you are in North Carolina, and you are interested in lowering your payments with a FHA Streamline Refinance or you have questions about FHA PMI Rates – call Steve and Eleanor Thorne 919 649 5058.