FHA loan rate changes increase accessibility to homeownership.

The Biden Administration has reduced the premiums on Private Mortgage Insurance (PMI) for Federal Housing Administration (FHA) loans from 0.85% to 0.55%, making homeownership more attainable for those who cannot afford a 20% down payment. While FHA loans require a credit score of at least 580 and have a funding fee of 1.75%, they are more lenient on debt-to-income ratios. Experts say the reduction in PMI premiums could save homeowners up to $144 per month on a typical home loan of $500,000.