Homeownership is Now More Affordable
The Federal Housing Administration (FHA) announced this week they will reduce their annual mortgage premium from 0.85% to 0.55%. This change applies to most new borrowers for loans endorsed on or after March 20, 2023. The average FHA borrower will save $800 per year. *Savings are based on the average FHA borrower purchasing a one-unit single family home with a $265,000 mortgage, according to HUD. Costs are based on loan amount, so savings will be even higher on pricier homes.
This cost-lowering measure will reduce monthly payments and make buying a home more affordable for your borrowers. Home buyers can save an estimated $300 per year for every $100,000 they borrow, which could help them qualify for MORE HOME!
Financing a home just became more affordable for hundreds of thousands of buyers!
With lower costs, you’ll save on your monthly payment and require less income to qualify for the mortgage you want!
Here’s a little background:
- FHA loans can often accommodate borrowers with lower credit scores, income and cash-to-close than conventional loans.
- FHA loans carry mortgage insurance (MI) as an added monthly cost for the life of the loan (11 years with 10% or more down payment). With this change, MI premiums will fall by 30 basis points, or 0.3% the value of the loan.
- The reduction applies to all eligible property types, including single family homes, condominiums, and manufactured homes, as well as to all acceptable down payment levels and maximum loan amounts.If you or someone you know has been unable to qualify for a mortgage due to income or has hesitated because of higher rates, it’s a good time to take another look.
Reach out if you want to discuss your situation. We can get you with a local lender here in Gainesville that will get you ready to BUY a HOME! Let’s get you talking to a local lender about your ability to buy a home! I’ll be happy to help.