As the nation’s housing market continues to improve, the Federal Housing Administration (FHA) recently moved to reduce the annual premiums new borrowers will pay by half of a percent.
While that may not sound like a lot, the impact and savings are considerable: More than two million FHA homeowners are projected to save an average of $900 each year. Meanwhile, the reduction could spur 250,000 new homebuyers to purchase their first home in the next three years.
What does this mean for your clients? The impact of lower premiums will not only result in lower annual housing costs for those who use FHA, it will also significantly expand qualified customers' access to mortgage credit.
"By bringing our premiums down, we're helping folks lift themselves up so they can open new doors of opportunity and strengthen their financial futures," said U.S. Department of Housing and Urban Development Secretary Julián Castro.