This just in, according to HUD Secretary Stevens, the Monthly Mortgage Insurance Premiums will increase on most FHA loans approx. .35%. The upfront portion of the Mortgage Insurance Premium will decrease 1% on all new FHA loans on Sept. 7th. (announcement here: http://portal.hud.gov/portal/page/portal/ver-1/HUD/federal_housing_administration/docs/August_Special_Edition_2_FromtheDeskOf.pdf)

What does this mean for home buyers? Probably not much unless you're a marginal buyer with a debt to income issue. Since the increase in Mortgage Insurance Premium is reflected in your payment, it could mean the increased payment would lower the amount you would qualify for. On a $100,000 loan, that equals approx. $33 per months on the payment. While $33 a month doesn't seem like a lot, I have seen loans get declined over a smaller amount.

If you're shopping for a home and have been preapproved prior to Sept 7th, you should contact your loan officer to make sure this will not affect your approval should start your loan after that date.

If you don't have a loan officer, or need additional information, I'm available at 208-861-7579 or at www.loansbyrogerhowell.com