Breaking News: FHA Reducing Annual Premiums for Homeowners

As the nation’s housing market continues to improve, U.S. Housing and Urban Development Secretary Julián Castro recently announced the Federal Housing Administration (FHA) will reduce the annual premiums new borrowers will pay by half of a percent. This act is projected to save more than two million FHA homeowners an average of $900 annually and spur 250,000 new homebuyers to purchase their first home over the next three years.

This new change, which is effective January 26th of this year, states that all case numbers pulled on FHA loans will receive .85 percent MI versus the current 1.3 percent. This action also reflects the improved economic health of FHA’s Mutual Mortgage Insurance Fund (MMIF).  FHA’s recent annual report to Congress demonstrates the economic condition of the agency’s single-family insurance fund continues to improve, adding $21 billion in value over the past two years. The reduction will also significantly expand access to mortgage credit for these families and is expected to lower the cost of housing for the approximately 800,000 households who use FHA annually. Click here to read a copy of the FHA’s Mortgagee Letter.

For more information about the upcoming FHA loan changes or to find out about qualifying for a home loan in the Phoenix area, please contact the Russo Team today. –Frank

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