Great news for FHA borrowers

Federal Housing Administration, known to be the government insurer of low down-payment home loans, has just reduced annual mortgage insurance premium by 25 basis points. FHA pointed out that the reduction in insurance premium was due to the improved financial condition of the FHA’s insurance fund and continue to make home-ownership less costly.

With the current hike in interest rate, this reduced annual MIP is expected to save home buyer an average of $500 this year which will help offsetting some of the costs of home-ownership and put them in the path to achieving the American Dream.

With FHA loans, borrowers can put as little as 3.5 percent down on a home.  US of Housing and Urban Development (HUD) officials said the reduction is likely to lower the cost of housing for approximately 1 million households who are expected to purchase a home or refinance their mortgages using FHA-insured financing in the coming year.

By Ivy Dinh

Experienced loan officer * Government loans: FHA and VA * Conventional loans * HARP 2 Refinance * Investment loans With many years of experience in the mortgage industry, I have broad knowledge of all current mortgage products and criterias that lenders looking for in each loan scenario. I love to apply my unique set of skills and knowledge to each file to make it becomes a successful transaction. Whether you are a borrower or a real estate professional who are looking for a mortgage, do not hesitate to contact me to learn about best loan products that fit your situation.