Starting January 1, 2009, all rate and terms will be 100% LTV (Loan-to-Value) including the UFMIP. Streamline Refinances will be at 98.5% and regular FHA refinances will be 98.25%.
This is an excellent opportunity for everyone to now start taking advantage of these interest rates. They have not been this low in YEARS, and now is a perfect time to see how much you can save.
Also remember, as I wrote in my previous post, that the new down payment requirement will now be 3.5% for all purchase transactions of the lesser of the appraised value or sales price. This is in addition to any closing costs incurred by the borrower.