Sci-Fi Housing

Monday, June 16, 2008

FHA Risk Based Prcing Benefits some, Not Others...

Here's some more data from the premium FHA risk based pricing that only our FHA MIP could uncover. First, let's read the FHA MIP Risk based Pricing text on the surface as if it is what it is - that being a benefit to those paying into teh FHA MIP fund for risk levels. This is from an LA Times article on May 15. 2008. Here we go:

"A study of an entire year's applications turned up the additional fact that the FHA's lower-income borrowers typically had higher FICO scores than those with larger incomes."Is it counterintuitive? Yes," Montgomery said. According to the study, applicants with FICO scores of 680 to 850 had a median income of $48,756 last year, while those with low scores of 500 to 559 had a median income of $53,388. Fair Isaac Corp.'s FICO scores range from about 300 to 850 -- the higher, the better -- and are predictive of future defaults and foreclosures. Even at rock-bottom down payments of 3%, applicants with lower incomes had higher credit scores than applicants with bigger incomes making similar-size down payments."

Now, read the data again and listen to when you hear FHA or MIP. When you hear FHA or MIP then count the number of syllabuls and then adjust for the risk based pricing. When youget to the risk level, then add a number one with an FHA MIP Risk symbol. Do that threee times and then look for the or mortgage insurance certificate FHA Risk based MIP layes of risk business!

After that, click this link for the MIP FHA Risk Based Premiums.

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