Lower costs are ahead for you if you plan to seek a Federal Housing Administration (FHA) mortgage loan. FHA has recently announced that they are cutting annual mortgage premiums from 0.85% to 0.60%. FHA buyers have a specific type of mortgage insurance to protect FHA’s funding in exchange for down payments as low was 3.5%. FHA mortgage exists to provide home ownership to credit-worthy borrowers who are overlooked by conventional lenders. The rise of mortgage insurance rates have put home ownership through FHA out of reach more most first time home buyers who are just starting out and may not have the typical 20% down payment or a perfect credit score. This cut back in price is a great opportunity for the Federal Housing Administration to get back on track to achieving their goal of making the dream of home ownership a reality for moderate income families.
If you are interested in learning more about FHA loans and how to qualify, please contact our office today. We would love to answer any questions you may have!