Phoenix AZ Homes and Condos

FHA Loan Costs Increase – But best loan for many Phoenix Home Buyers

As of 4/18/2011 FHA loan costs are going to be higher because FHA has increased the monthly Mortgage Insurance Premium .25% to 1.15% of the outstanding loan balance divided by 12. The Up Front Mortgage Insurance Premium(UFMIP) had been reduced to 1% 0f the loan amount to help “cash strapped” buyers qualify and remains unchanged. Since many home buyers finance the UFMIP, the initial loan balance can be computed by increasing the principal loan amount 1% after deducting the 3.5% minimum down payment for the examples below.

February 2011 Average Sales Price by City:

Chandler Homes for sale AZ sold for $197,993 and the FHA monthly MIP cost will increase $40.16 to $184.75.

Gilbert Homes for sale AZ sold for $189,113 and the FHA monthly MIP cost will increase $38.02 to  $176.64

Mesa Homes for sale AZ sold for$139,072 and the FHA monthly MIP cost will increase $28.24 to $129.90

Phoenix homes for sale sold 125,313 and the FHA monthly MIP cost will increase $25.20 to $117.05.

Tempe homes for sale sold for $164,821 and the FHA monthly MIP cost will increase $33.47 to $153.95.

Scottsdale homes for sale AZ sold for $459,695 and that is well above the maximum FHA loan amount. Therefore a conventional loan would be more appropriate.

As the loan is paid down, the MMIP will continue to decrease until the remaining loan balance is 78% of the original loan balance. At that time you may request the MMIP payments be terminated, providing you have owned the home at least 5 years.

While everyone would prefer not pay more to own a home, FHA MMIP is tax deductible.

Contact Sam Elam (480.213.1799) to help you purchase one of the  homes for sale in Chandler, Gilbert, Mesa, East Phoenix, Scottsdale or Queen Creek. Rates remain low, but there is a lot of competition for the best homes. Don’t miss out. I am an Associate Broker with 21 years of buyer representation experience and I look forward to working with you soon.

Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.