Today I am writing to put some sunshine into the life of first time home buyers using FHA loans. Here, let me turn the light on...
As of January 26, 2015, the premiums for insurance on Federal Housing Authority (FHA) mortgages will be reduced! FHA loans allow you to put as little as 3.5% down when purchasing a home, but require an additional mortgage insurance with a premium (MIP) that can add hundreds of dollars to your monthly payment.
President Obama's plan to cut this percentage paid may allow up to a quarter of a million more Americans to purchase homes. The loan percentage, in some cases (see the chart below), was 1.35% and will be reduced to 0.85%, saving about $900 annually for a typical home buyer, according to the FHA. These additional premiums are included when looking at a borrower's "debt-to-income: ratio, and can knock some borrowers out of the housing market if their debt-to-income ratio exceeded 43 percent (i.e. you owe more than 43% of what you earn). Even a few dollar savings on the MIP could put a borrower under the 43% line.
If you would like more information on this good news or you would like me to connect you with an excellent lender to get started, please call/text 562.673.5335 or email me katielarson@kw.com and I'll get you connected. I will also send you information on first time home buying, such as how to choose an agent and how to get started.
With interest rates so low first time home buyers are crazy not to buy now.
ReplyDelete