Time Is Running Out To Save on FHA Financing

Reno Home Buyers ~ Time Is Running Out To Save on FHA Financing

~ FHA Mortgage Premiums are set to increase April 1, 2013 ~

FHA Mortgage IncreaseThe Federal Housing Administration (FHA) will soon become more expensive and more restrictive.They are increasing the monthly required mortgage insurance premiums from 1.25% to 1.35% for new mortgages under $625K. While this might not sound like much, it can add up to a substantial amount of money over time.

For the longest time home buyers have relied on FHA loans to obtain mortgages using just 3.5% down. These government-backed loans have historically helped borrowers that otherwise might have had a hard time getting a loan to become homeowners.

All FHA loans require the borrower to pay Private Mortgage Insurance, a premium paid each month by the buyer to insure the lender against default. FHA covers the insurance. In light of financial troubles and exhaustive reserves, the FHA recently announced they are changes/increasing the PIM, as mentioned above.

FHA will also require new FHA borrowers with a loan to value ratio greater than 90% to continue paying annual for the LIFE of their mortgage ( until they sell or refinance out of FHA ). For those with a loan to value under 90%, MIP (mortgage insurance premiums) must be paid for 11 years instead of 5. This change goes into effect June 3, 2013.

For additional information on the FHA changes that are set to take place shortly, please give me a call today. I can refer you to a trusted mortgage consultant that can assist you with all your Reno Home lending questions. There are many programs available to home buyers today that may not cost you as much as the FHA loan. Call today to find out more about these programs.

Reno Home Buyers ~ Time Is Running Out To Save on FHA Financing

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