Homebuyers who will be applying for FHA or VA loans will be pleased to learn that MIP and certain funding fees have been decreased for each of them respectively.
FHA MIP is Reducing
As of March 20th, 2023, monthly mortgage insurance premiums (MIP) are decreasing by 30 bps.
The savings for around 850,000 borrowers over the next year are estimated to add up to around $678 million combined.
According to HUD, “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. In addition to providing overall savings to borrowers, a lower annual MIP can also help more people qualify for a mortgage.”
Certain VA Funding Fees are Decreasing
Borrowers looking to apply for VA mortgages will be pleased to know that funding fees are decreasing for mortgages that close on or after April 7th, 2023 and before November 14th, 2031. You can find out more in the chart below.
The reduced funding fees only are for buying a home or building one using a VA loan, not for refinancing. They also are only available when putting 5% or more down with a VA mortgage.
Apply Now for a VA or FHA Loan in Florida
If you have questions about the reductions to FHA MIP and certain VA funding fees, we can answer them during your consultation for a home loan. If you are ready to apply for an FHA or VA mortgage now in Miami or anywhere in FL, please give us a call today at (786) 220-1100. We are excited to help you move affordably into your new home.
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