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Reduced FHA Mortgage Insurance Premiums

Housing Just Became More Affordable

Mortgage lending and credit standards have tightened in recent years.  This has helped promote responsible lending practices and new consumer protections, however it has also made refinancing or buying a home more difficult for many homeowners and would-be home buyers.

For this reason, President Obama announced on January 7, 2015, a reduction in annual FHA mortgage insurance premiums (MIP) for new mortgage loans in an effort to help make housing more affordable for more home buyers and homeowners. Purchases AND refinance transactions will benefit from the premium reduction, which becomes effective Monday, January 26, 2015.  FHA will lower annual MIP by 0.5% from 1.35% to 0.85%.  According to the White House, this reduction should result in a savings of $900 per year for the typical home buyer!  Existing homeowners who choose to refinance may see similar savings, as well.

For home buyers who have already applied for a FHA home loan, HUD has temporarily approved the cancellation of existing case number assignments of active case numbers within 30 days of January 26, 2015. Buyers may receive a new case number and take advantage of reduced FHA MIP.

Purchasing a home with a lower monthly FHA MIP may help buyers:

  • Leave the housing sidelines and enter the housing market
  • Take advantage of FHA’s 3.5% down payment option
  • More easily qualify for their chosen price range

Refinancing into a lower monthly FHA MIP may help homeowners:

  • Reduce an existing overall mortgage payment
  • Reduce an existing mortgage interest rate
  • Build equity faster

As a responsible lender, we are eager to discuss the FHA home loan and other financing options for which you may be eligible so that you can choose the right financing option to meet your needs.

Your local mortgage consultant will be happy to provide a complimentary consultation!



All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Maryland, North Carolina, Pennsylvania, South Carolina, Virginia, and West Virginia.
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©2015 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.

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