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Fha Loans

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finance2 years ago•2 min saved

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.

via ABC15 Arizona in Phoenix|

#biden-administration #fha-loans #finance

finance2 years ago•2 min saved

Mixed Impact: Mortgage Fees Vary for Different Credit Scores Under Biden's Plan

Mortgage fees are changing, with those having better credit scores paying more and those with lower credit scores paying less. The changes are aimed at helping more people become homeowners and have narrowed the fee gap between the top and bottom of the credit score spectrum. The changes will help more people on the lower end of the credit score range upgrade from government-backed FHA loans to conventional loans, which could save them money in the long run. However, there are concerns that this could mean more risky loans are approved. These changes only affect loans backed by Fannie Mae and Freddie Mac.

via WRAL News|

#credit-scores #fees #fha-loans

real-estate2 years ago•2 min saved

Why Down Payments Have Hit a Two-Year Low

The typical down payment for US homebuyers fell 10% YoY to $42,375, the lowest level in two years, due to low competition in the housing market. Buyers are able to purchase homes without facing bidding wars and don't need to fork over a huge portion of their savings for a down payment. High housing costs, persisting inflation, and concerns over the uncertain economy are also hitting budgets hard. Lower home prices have fallen more than 10% from their peak in May 2022 and are down 1.5% from a year ago.

via Fox Business|

#down-payments #fha-loans #homebuyers