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Important Updates to FHA and USDA Loans

April 6th, 2013

       Important Updates
 
 
FHA Mortgage Insurance – New MIP factors will be effective April 1, 2013. On a maximum LTV loan, the annual factor is 1.35% (up from 1.25%).
 
Also, starting in June, the Annual MIP will be payable for the life of the loan for LTVs over 90%.  HUD will no longer follow the 78% drop off rule.
 
USDA – A Continuing Resolution recently passed to fund our government operations.  The CR contained verbiage to extend USDA Eligible Areas – with no change – through the end of this fiscal year, 9/30/13.
 
Various bills have been introduced to modify the definition of “rural” and we will keep you updated as they make their way through Congress.
Remember!  This program is budget neutral – meaning it pays for itself.
 
Credit Reporting Basics for REALTORS®
We are hosting educational seminars to provide basic insights into the use of credit reports.  They will be led by our bureau’s Account Manager.
·       2 Hours Continuing Education Credit for DRE Licensees
·       Refreshments will be served
·       Free of Charge
 
We will hold classes in Hanford, Visalia, Selma, and Fresno.  Please contact your local KMSI Branch Manager for Date, Time, and Location.
 
Market Wrap- Be aware that interest rates have risen quickly over the past few weeks.  Time to get your clients to commit before rates push them out of the price range of the home they want.  If you’d like some ‘visuals’ on the impact of rates vs. affordability – just let us know!