Credit Score Percentaje: Excellent: 5.99% Good: 6.25% Fair: 6.5% Poor: 6.65%
Estimated Taxes & Insurance: Property taxes are typically around 1.2% of the home’s value, though the exact percentage depends on the location of the property. Homeowners insurance usually averages about 0.35% of the home’s value per year, but this can vary depending on the insurance provider. A loan specialist can give you a more accurate estimate for taxes and insurance specific to your area.
Annual MIP: The annual Mortgage Insurance Premium (MIP) generally falls between 0.45% and 1.05%, depending on the loan term, loan size, and down payment. For most FHA borrowers, the standard rate is 0.85% of the loan amount.
Upfront MIP: The Upfront Mortgage Insurance Premium (also called the FHA funding fee) equals 1.75% of the loan amount. This fee is paid at closing but is usually rolled into the total loan balance, minimizing upfront out-of-pocket expenses.
Amount Financed: The amount financed is calculated as: Purchase Price – Down Payment + Upfront MIP.