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In 2010, FHA loans accounted for over 36% of the loans I originated. It is a very popular program whose most notable feature is the ability to put a low 3.5% down payment. FHA gained popularity over the last few years as we saw the days of 80/20 mortgages and the like come to an end, and offered a great alternative with low rates and low payments.
Due to this increased demand FHA is constantly looking for ways to rebuild their capital and be able to continue to offer these fantastic programs. The newest announcement from them states that they will be increasing their annual mortgage insurance premium from the current levels up by .25%, effective April 18, 2011.
What does this mean to you? Well, if you are currently pre-approved to buy with an FHA program, you might want to get a bit more serious about your house-hunting. If you are looking at homes around $250,000, you could potentially increase your monthly payment by about $50 if you haven’t secured your FHA Case Number (comes during financing – your lender will do this for you) by the change date. That is significant!
Rates are low, homes are out there, now is the time – call your Realtor today to get out looking, and call me to get your pre-approval set so you can make offers with confidence when the time comes.
