Lower Annual Insurance Premiums on FHA Loans Create Savings for Homebuyers

President Barack Obama announced January 7, 2015 that the Federal Housing Administration (FHA) will lower annual insurance premiums from 1.35% to 0.85% to make homeownership more affordable for over 2 million Americans in the next 3 years.  Real estate professionals believe this will help many first-time homebuyers, a vast majority of FHA borrowers, as well as homebuyers looking to refinance.  Even with this decrease, FHA will remain on a positive financial path.  This program will only pertain to active FHA case numbers appointed on or after January 26, 2015.

CNBC’s article, FHA to lower cost of mortgage insurance, reported:

For the typical FHA applicant, the reduction in premiums means a savings of about $80 on their monthly payment, according to CoreLogic’s chief economist, Sam Khater.

A little more about FHA loans

  • FHA loans can be used for purchases and refinances. Can choose between fixed and adjustable-rate mortgages. There are also FHA 203(k) loans for renovations to help with home updates to lower utility bills.
  • Homebuyers can purchase and renovate a home with FHA with as little as a 3.5% down payment.
  • Homebuyers qualify for a FHA loan with as little as a 580 credit score (550 with 10% down).
  • The seller, home builder, or lender is allowed to pay some or all of the closing costs on your behalf through an FHA loan.

 

If you are interested in purchasing a home with a lower annual insurance premium, call ReCasa Financial Group’s Graham Montigny or Michael Wolf today at 614-221-6770. 

ReCasa Financial Group   614-221-6770
NMLS #9722 OH: MB.803923.000 IN: 08-0038 LB  PA: Licensed by the PA Department of Banking
130 E.  Chestnut Street, Suite 200 Columbus, OH 43215
Graham Montigny   NMLS # 195412   OH LO 002049.000     IN LO 195412     PA LO 35011
Michael Wolf  NMLS # 85452  OH LO 001440.001
Michael Troutman  NMLS # 319798  OH LO 037303.000