FHA Takes Action to Make the American Dream Come True for Many Homebuyers!
January 13, 2017
FHA loans open doors of opportunity for buyers who might not qualify for other conventional loan products. FHA allows creditworthy borrowers to pay an insurance premium, referred to as (MIP) for a mortgage that requires as little as 3.5 percent down payment.
The best news of all is The Federal Housing and Urban Development, referred to as (FHA) announced that all FHA loans closing after January 27, 2017 will have reduced mortgage insurance premiums, (MIP). These reduced MIP premiums will save home owners purchasing a mortgage with FHA financing an average of $500.00 a year. It may not sound like a lot per year, however this may be the difference of whether a first time homebuyer or lower income borrower can qualify for a loan. On average this is a savings of $15,000.00 over the life of the mortgage loan. This reduction in MIP payment comes just in time to offset some interest rate increases as well. This looks like a WIN/WIN situation for both home buyers and the real estate market for 2017!