On July 14th, FHA will introduce risk based Mortgage Insurance Premium pricing. Currently, FHA's mortgage insurance requirements are the Upfront MIP of 1.5% of the base loan amount (that can be financed into the Total Loan Amount) and then a monthly mortgage insurance payment of .50%.
When the new changes become effective the range will be from 1.25% - 2.25% Upfront MIP and .50%-.55% on the monthly mortgage insurance premium. The actual amount of Upfront MIP and Monthly mortgage insurance will be based on LTV and Credit Score. (Very similar to Fannie Mae's risked based interest rate pricing) You can see the full Mortgagee Letter 2008-16 by the following the link below:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/08-16ml.doc
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You can find great local Scottsdale, Arizona real estate information on Localism.com Eric Murrietta is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
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