Why FHA Might Be A Good Option Now
In an effort to make responsible homeownership more accessible, the Federal Housing Administration (FHA) announced that it cut its fees. These savings will make purchasing a home much more affordable for thousands of Americans.
Last year, the FHA added increased fees, which made its loans more expensive and a much less appealing option for low down payment buyers. But, just this week all that has changed. Now that FHA has announced that it has decreased their fees, it’s worth taking another look at this loan program especially if saving for a larger down payment has stopped you from making your homeownership dreams a reality in recent years.
The FHA is a major mortgage lender for first-time homebuyers, as well as lower and middle-income borrowers. By lowering the fees associated with an FHA loan by half a percentage point, from 1.35% to 0.85%, it will save borrowers an average of $900 a year.
These changes are expected to boost the housing market as a whole by making home ownership more affordable for over 2 million people over the next 3 years.
The National Association of Realtors (NAR) claims that FHA premium increases kept over 630,000 borrowers out of the housing market during the past 2 years. If this applies to you, then now is a great time to think about getting started again!
“By bringing our premiums down, we’re helping folks lift themselves up so they can open new doors of opportunity and strengthen their financial futures,” said Julian Castro, Secretary of Housing and Urban Development.
This is great news for so many homebuyers!
For more information about this home buyer program or any others, please contact us here.