FHA Needs to Lower Fees and MI

Three times last week, someone didn’t qualify for an FHA loan because the fees, primarily the monthly mortgage insurance.

Dodd-Frank creates more regulations for appraisers

For these three different transactions the monthly mortgage insurance were as follows: $409, $361 and $212 and that amount stays in place for the life of the loan.

One of these transactions I was able to get done as a conventional loan and instead $361 being the monthly fee, it was just about half and will only be attached to the loan until there is enough equity to eliminate it completely.

The fees are way too high and should be reduced and be brought into line with rates for conventional and USDA loans. I can understand that mortgage insurance fees need to be charged, but these current rates are way out of whack.