FHA Cuts Mortgage Insurance Premium
Are you looking to buy your first home or refinance your existing FHA mortgage? Now may be the right time to lock in your rate. The Federal Housing Administration has decided to reduce the annual mortgage insurance premiums by 0.25%. According to the U.S Department of Housing and Urban Development (HUD), this reduction is expected to lower the cost of housing for the approximately 1 million households who either purchase a home or refinance their mortgages using an FHA-backed loan. The new premium rates are projected to save new FHA-insured homeowners an average of $500 this year. The reduction of 25 basis points on mortgage insurance premiums affects most new mortgages closing on or after January 27, 2017. Ask your Loan Officer for further details.
FHA Loan Features:
FHA Loans are very popular with first time home buyers and people looking to refinance because they offer more relaxed lending guidelines than a conventional loan. Here are some of the main FHA Loan features:
- Low down payment options
- FICO Score starting at 580
- 100% gift money toward down payment
- Combine repair costs and property price into a single mortgage
There are several types of FHA Loans including:
- 30-year Fixed Loan
- 15-year Fixed Loan
- Adjustable Rate Mortgage
If you’re in the market for a new home, you can use an FHA Mortgage on several different types of properties:
- Single Family Homes
- 2-4 Unit Homes
- Manufactured Homes
If you would like to find out whether an FHA Loan is right for your financial future, you can discuss your options with a loan specialist.
Source: U.S. Department of Housing and Urban Development Press Release No. 17-003 Released on January 9, 2017
As of 1/20/2017 HUD has suspended the MIP reduction.