How Will This Impact Buying a Home?
I just wanted to let you know about an important announcement from FHA that will have an impact buying a home. As of this coming April 18th, the monthly Mortgage Insurance Premiums will increase for FHA loans (.25%). The change raises the current premium from .9% to 1.15% on 30 year fixed loans.
This increase could have a large impact on borrowers and their ability to qualify for FHA financing (or may even take them out of their comfort level for monthly payment).
Example:
$150,000 loan amount
Current monthly MIP: $112.50
New monthly MIP: $143.75
While this change will help strengthen FHA, which is important since some estimates show that FHA loans represent nearly 50% of all loans being done today, it puts the burden of shoring up FHA back on the consumer.
Even though FHA has increased their rates, the FHA loan is still a good option for buyers with little to put down; however, conventional financing is becoming more attractive every day.
If you have any questions at all about what this might mean, call or email me anytime. I'm committed to doing whatever I can to help people buy a home.
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