FHA Mortgage Insurance- UPDATE
Check it out. Within hours of the inauguration it has been announced that FHA will not reduce the mortgage insurance costs for FHA loans funding on/after Jan 27th! This has been retracted and suspended indefinitely. We previously announced it but it has been retracted following the inauguration. FHA Mortgage Insurance costs will stay the same and unfortunately those needing FHA loans will not see savings in their mortgage insurance costs.
This is an interesting move after the November 2016 annual report came out to congress that FHA’s mortgage insurance fund grew by $3.8B in fiscal 2016! It was the fourth consecutive year in growth to FHA mortgage insurance fund. And was valued at $27.6B at the time of the report to congress. A few other measures in the report to congress in November show that FHA mortgage early payment delinquencies were at 10-year lows. So given that 82% of FHA loans were taken out by first time home buyers, what does this move mean?
For more information read the Mortgagee Letter released; here
@MtgMaestro- Ray Williams