(Mortgage Letter 2016-01) FHA has reduced its mortgage insurance premiums as of January 25, 2016.Allowing for new fha mortgage borrowers to take advantage of the 0.50 basis point reduction on annual mortgage premium rates. At a glance: Most FHA borrowers pay an annual MIP of 0.85% for the full term of the loan, or up to 30 years.

But, even with January’s premium cut, the latest federal budget projects that FHA will make a net profit of $6.5 billion for taxpayers in fiscal year 2016. reduction, perhaps down to the .55%.

Introduction; The Mutual Mortgage Insurance Fund; Major Factors Affecting.. If successful, these options can reduce the losses that FHA would.

FHA MIP, or mortgage insurance premium, is a type of insurance policy that protects lenders if an FHA loan holder defaults on his or her mortgage. This insurance allows lenders to issue FHA loans requiring very small down payments and at low rates. FHA MIP reduces lender risk, and the benefits are passed onto the borrower.

FHA changes for 2016 FHA mortgage insurance. – Facebook – FHA Changes for 2016 On January 9, 2016 the Federal Housing Administration (FHA) announced the reduction of it’s annual mortgage insurance premium (mip) rates. effective on or after January 26, 2016 FHA will reduce the premium from 1.35% to .85% a reduction of .5%.

 · FHA made an announcement about cuts in the annual mortgage insurance premium (MIP) in a preliminary January 2015 announcment. The new fha policy reduces the rate for most Title II forward mortgages with terms greater than 15 years.

Fha Requirements Florida FHA published in the Federal Register, a final rule (Docket No. FR-5457-F-02) that streamlines the inspection requirements for FHA single family. adding Account Executives in the Northeast and in.

Changes in Federal Housing Administration (FHA) Mortgage Insurance Premium (MIP) When queried by members of the committee about the january 2015 premium reduction. mortgage insurance premium cut from 1.35 to 0.85 in January 2015 makes it much harder to achieve that objective..

Requirements For Fha Loan When using an FHA secured loan on a property, the buyer and seller of the property must adhere to certain rules. A truly motivated seller can use the tools that FHA provides in order to assist in facilitating a successful transaction on her property. The seller can contribute up to 6 percent of the sales price toward a buyer’s closing costs.

In the October 2, 2015, notice, HUD stated that the FY 2016 MIPs would be the. MIP rates for mortgage insurance programs under FHA's Office of. rate reductions are also proposed to promote energy efficient housing.

FHA MIP Reduction in 2016? FHA’s finances started turning around. In 2014, had nearly $5 billion in its reserve fund, nearly one half of one percent of all outstanding loans. FHA achieved an even bigger milestone in October 2015. It had surpassed the 2% minimum threshold for the first time since 2008. The FHA capital reserve ratio now stands at 2.07%.