Did you hear the news?
The Federal Housing Administration (FHA) recently announced that they are dropping mortgage insurance premiums for borrowers. This is great news for anyone looking to buy a home!
The FHA was started in 1934 when banks were hesitant to lend money for mortgages. The FHA was created to insure home loans, making it easier for people to buy a home. Many middle-class Americans have relied on the FHA program to buy a home and helped a lot of them build generational wealth.
The recent decision made by the FHA to drop mortgage insurance premiums is good news for borrowers. With mortgage rates going up so much in the last year, it's been hard for many people to afford a home. But with the reduction in insurance premiums, new borrowers can save up to $1,200 a year on a $400,000 mortgage. That's a lot of money!
Their program is different from other loan products because it only requires a 3.5% down payment, which means it's easier for people to qualify for a loan. It also has more flexible lending guidelines than many conventional loan products. And contrary to popular belief, the FHA is not just for first-time buyers. Anyone can use the FHA program to buy a home.
The reduction in insurance premiums will make it more affordable for people to buy a home and keep the FHA competitive with other loan products. This is great news for anyone who wants to buy a home and build wealth for their family. It’s also an overdue change, as FHA has been a more expensive option than most conventional loan products which also have lower down payment options, usually starting at 3% or 5% down! It’s a great start, as always, look at all your options! If you are looking for a recommendation on a great mortgage person don’t hesitate to ask, we work with some of the best in the industry!