1.UFMIP is the easiest to understand. It is a lump sum premium that is financed into your FHA loan. FHA UFMIP is 1.75% of your FHA loan amount. Consider the following: You are buying a $150,000 home and making the minimum 3.5% down payment ($5,250).
On Friday, the U.S. Department of Housing and Urban Development (HUD) submitted its annual report to Congress on the financial condition of the Federal Housing Administration’s (FHA) Mutual Mortgage.
APPENDIX 1.0 – MORTGAGE INSURANCE PREMIUMS Upfront Mortgage Insurance Premium (UFMIP) All mortgages: 175 basis points (bps) (1.75%) of the base loan amount. Exceptions: Streamline Refinance and Simple Refinance mortgages used to refinance a previous FHA-endorsed mortgage on or before May 31, 2009 Hawaiian Home Lands (Section 247)
The higher mortgage insurance cost associated with an FHA loan can raise borrowing costs, said Steve Donahue, vice president of mortgage origination at San Jose, Calif.-based Technology Credit Union..