New FHA Rules

Effective today (7-14-08), FHA will be changing the way it calculates the mortgage insurance premium (PMI). It used to be the same formula (percentage wise) for everyone. Not anymore! Now the mortgage insurance (MIP) rates will vary depending on the borrower's credit score and the loan-to-value ratio. So, knowing your credit score and maintaining good credit will become even more important, when looking to purchase a home with an FHA mortgage. Visit my recent articles on our activerain blog to read more about credit scores (FICO), how to obtain your credit report, where to get your FICO scores, and how to increase your credit score.