Here is important news about Housing and Urban Development from our Lender Jeff Lancaster at Prime Lending.

This is cutting edge news and a more formal announcement will be made, however, I wanted you to know about this ASAP.  This is a very important news for investors interested in Dallas Homes and Plano Foreclosure Properties.

HUD has announced their intention to

• Lower the Up Front MIP from 2.25% to 1% AND

• Increase the Annual (monthly) MIP From .50 – .55% to .85 – .90% depending on LTV

on loan terms greater than 15 years.

 This is scheduled to be effective for case numbers issued on September 7, 2010 pending being signed by our president.

 The results of this change is:

 Assuming

$100,000 base loan

 UFMIP

$101,000 using the new MIP in the mortgage amount 

$102,250 using the old MIP in the mortgage amount

 Annual MIP

$909.00 ($75.75 Monthly) New Annual MIP based on $101,000

$562.38 ($46.86 Monthly) Old Annual MIP based on $102,250

 At 5% 30 years assuming 96.5% LTV

 $617.94 New

$595.76 Old

 A borrower will need an estimated $75-80 more in monthly income or $900 more per year to qualify per $100,000 in loan amount. 

If you need more information about Dallas Real Estate market, Plano Homes for Sale and Frisco Real Estate, tips about home buying, home selling, and staging feel free to contact me.