For loans funding on March 20, 2023, and later.
HUD has released details of a long-anticipated plan to reduce the annual MIP (mortgage insurance premiums) that are currently charged to FHA borrowers by 30 Basis Points (0.3% of the loan balance).
HUD Secretary, Marcia Fudge made the announcement on Feb. 22nd at Bowie State University.
The monthly premium will be reduced from 0.85 percent to 0.55 percent for FHA borrowers.
Details from HUD Release:
“The 30 basis point annual MIP reduction applies to all eligible property types, including single-family homes, condominiums, and manufactured homes, all eligible loan-to-value ratios, and all eligible base loan amounts.
The average FHA borrower purchasing a one-unit single-family home with a $265,000 mortgage will save approximately $800 this year as a result of FHA’s premium reduction.
For the same borrower with a mortgage of $467,700 – the national median home price as of December 2022 – FHA’s annual MIP reduction will save them more than $1,400 in the first year of their mortgage.