FHA Mortgage Insurance is increasing again on April 9, 2012. This increase will impact many buyers, it can take them from qualifying to not qualifying very quickly.
What is Mortgage Insurance and what does it cover? Mortgage insurance is provided by the Federal Housing Administration, or FHA, it is intended to make buying a home easier for buyers who may not have a lot of money available for a down payment. The FHA is able to do this because it insures the repayment of your loan in the event of your default. Because this removes much of the risk to the lender, FHA loans typically offer the smallest down payment requirements for a mortgage.
Ray Williams, [email protected], 303-779-0591 ext. 101