Affordability Just Increased for Tons of Buyers!
Financing a home just became more affordable for hundreds of thousands of buyers… News recently dropped that Mortgage Insurance will cost less on new FHA home loans!
Beginning March 20, most FHA loans will carry lower mortgage insurance premiums. The average FHA borrower will save $800 per year.* Costs are based on loan amount, so savings will be even higher on pricier homes. 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’ve been on the sidelines due to income requirements or have hesitated buying because of higher rates, now is an opportune time to take another look. Remember, it is very unlikely that rates return to the unusual pandemic levels we saw the past few years. The new normal may very well be right in front of us. Plus… For the first time in many years prospective homebuyers may now bargain to some degree for their next home purchase. Right now may be the only window buyers will likely see for quite some time to take advantage of somewhat of a buyers’ market.
Connect with us today: 952-942-0110 / CambriaMortgage.com/Connect.
*Savings are based on the average FHA borrower purchasing a one-unit single family home with a $265,000 mortgage, according to HUD.