FHA is lowering the annual FHA mortgage insurance premium from .85% to .60% per year for buyers putting less than 5% down.
This change will result in nice savings for your buyers monthly payments. For example, on a $500,000 home with 3.5% down = $17,500 down with FHA Base Loan Amount of $482,500 + 1.75% FHA up-front Mortgage Insurance Premium = $8443 for new FHA Total Loan Amount of $490.943.
Previous Annual MI Premium was .85% x $490,943 = $4,173/year $347.75/month under old FHA MIP calculations.
New FHA Annual MI Premium is .60% x $490,943 = $2,945/year $245.41/month with new FHA MIP calculations.
The maximum allowable FHA loan amount for a single family unit in 2017 is $493,350.