FHA Reduced Premiums BRINGS Relief to Borrowers
Yesterday the Federal Housing Administration (FHA) announced it will reduce the annual insurance premiums most borrowers will pay by a quarter of a percent. With the reduction, the annual cost for most borrowers will be 0.60 percent of the loan balance and is projected to save new FHA-insured first time buyers an average of $500.
“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” said U.S. Housing and Urban Development Secretary Julián Castro.
…It’s time for FHA to pass along some modest savings to working families.
This move will help preserve the dream of home ownership for credit-qualified borrowers and comes as the FHA enters a fourth straight year of improved economic health. The cut takes effect January 27.
If you are thinking of buying a home this year, now is the time to get to work on your loan pre-qualification. Home sellers often use this time of year to put the finishing touches on their properties in preparation for the busy spring market. The first step in buying a home is finding out how much you can afford and getting pre-qualified. Doing so will allow you to shop with confidence and ultimately, to put in a strong offer on your dream home once the competition ramps up.
We’ve written about FHA Loans and our experience with them before on this blog. This 2008 article still contains some great practical advice, even though the market was quite different then. That’s the thing. THE MARKET IS ALWAYS CHANGING. Our job is to keep up with all the changes for you. We can recommend lenders that frequently work with first time FHA home buyers and we can provide you with the advice and expertise necessary to make the FHA process easier. Call us today for more information.