FHA Monthly MIP has been decreased! The monthly premium used to be 1.35% and is now only .85%. This is a huge break through after FHA has continued to increase the premiums over the last couple of years to offset their foreclosure debt. Now that they have recouped their costs from the collapse of the real estate market, they are giving the benefits back to today’s home buyers with a lower premium.
This allows for buyers, especially first time homebuyers, to qualify for more! The lowered amount equates to about $40 savings or in an increase in purchase price of about $6,000 for every $100,000 financed.
Rates are still near historical lows, home prices are still near the bottom and are on a upward trend, and credit guidelines are starting to loosen again. People are asking when is the time to buy and NOW is the answer for all the above mentioned.
Info provided to me by Aaron Thompson Legacy Mortgage
