FHA MIP Changes

FHA MIP Changes

The following two changes are effective for all case numbers assigned on or after April 1st:

1. FHA will be increasing their MIP fees (up to 10 bps).

Your FHA case number cannot be assigned until we get your signed loan disclosure package back. So, Meridian began structuring loans with the new MIP fees as of Monday, March 18th 2013.

If we receive your package back before April 1st, we will attempt to reduce your MIP amount. But Meridian cannot promise that your FHA number will be assigned in time. Please discuss this with your Personal Adviser if you have any questions or concerns.

2. MIP will no longer be cancelled after 5 years and 78% LTV. Instead:

  • LTV under 90% – MIP will last 11 years (no 78% criteria anymore)
  • LTV over 90% – MIP will last the entire term of the loan (no 78% criteria anymore)

The following change is effective for case numbers assigned on or after June 3rd:

15 year loans under 78% LTV will no longer be exempt from MIP. They will have the same MIP as other 15 year FHA loans < 90% LTV.