Huge news for folks trying to buy their first home.. In an effort to make owning a home more affordable, the Federal Housing Administration will dramatically cut the costs associated with the mortgages it backs.
Premiums for FHA mortgage insurance, (which is designed to protect the agency in case a borrower defaults on a loan), will be cut from 1.35% of a loan’s value to about 0.85%.
>>>So what does this mean for the potential buyer??
Afford more for your money! Home ownership is not just for the rich. I love educating my clients of all the advantages a first time buyer really has. Very cool news.