As a Seattle real estate buyer with a FHA pre-approval please read this!  Also if you are a Seattle home owner with FHA financing, this is just as important if you are considering to refinance with today’s extremely low rates.

On August 5, 2010 Congress passed HR5981 which allows FHA to increase monthly insurance premiums on FHA home financing.

Current FHA loan structuring has an Upfront Mortgage Insurance Premium funding fee of 2.25% with a standard monthly premium of .55%.

New updates starting in October  include a reduced Upfront Mortgage Insurance Premium funding fee to 1.0%.  But the monthly premiums will increase to .85% for homes less then 95% loan to value and .90% for homes greater then 95% loan to value.

The minimum down payment for FHA is at 3.5% and this will remain the same.

With the change taking place on October 4, 2010 you must have your FHA case number assigned prior to this day.

If you are currently financed with a FHA home loan, no changes will take place for your loan.  You have been grandfathered into your current loan.