FHA Mortgage Insurance Premium Rate Cut Suspended!
February 17, 2017
The previously announced rate cut on FHA Mortgage Insurance Premiums that was set to take effect January 27, 2017 has been suspended. The new Secretary for the Department of Housing and Urban Development, Dr. Ben Carson, stated prior to being confirmed, that he plans to "really examine" the financials to ensure a balance between encouraging sustainable home ownership and protecting taxpayers against future losses.
Even though, this will come as a disappointment to purchasers that were purchasing a home using an FHA mortgage loan after January 27, 2017, the FHA mortgage rate tends to be cheaper than private mortgage insurance for borrowers with lower credit scores and with less money for a down payment.
Regardless, FHA loans continue to be a great source of financing for buyers with lower credit scores and little cash down as well as for wealthier buyers that may have a difficult time qualifying for other types of loans.