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On October 1st, 2008 FHA will be raising their mortgage insurance fees.

In this changing market even FHA needs to protect themselves a little more.

Currently FHA requires mortgage insurance on all loans with a LTV of over 80%.

The current fee for this is 1.5% of the loan amount paid upfront and .5% monthly fee.

The new fees will be 1.75% upfront fee and .55% for LTV's over 95%.

Example: A 300,000 loan at 97% LTV would have a $4,500 upfront cost and $125 month for mortgage insurance.

Under the new rules the same $300,000 loan would have a upfront cost of $5,250 and a monthly of $138.

Protect your clients and get your FHA loans approved before the deadline.

You can contact me with any questions you may have.

Take care,

Chuck Davis

714-625-8954