FHA Insured Loans Just Got Cheaper!
Are you a first-time homebuyer looking to purchase a home? If so, I’ve some exciting news for you! The Housing and Urban Development (HUD) has announced a reduction in the annual mortgage insurance premium (MIP) on FHA insured loans.
What does that mean?
It lowers the amount of money that a borrower would have to pay for mortgage insurance when they use an FHA-insured loan. This is good news for people in California who want to buy a house because it means they will pay less money each year in insurance fees. In other words, it makes homeownership opportunities more accessible throughout California.
Who benefits from this change?
FHA loans are often used by first time buyers, borrowers with mediocre credit, and/or might have lower credit scores. This change impacts those borrowers the most. Last year, many people in California used FHA loans to buy their homes, so this change will make a big difference for a lot of families.
In short…
Overall, this is a positive development for people in California who are looking to buy a house and use an FHA-insured loan to do so. So, if you're a first-time homebuyer looking to purchase a home, this is an excellent opportunity for you to take advantage of lower mortgage insurance premiums.
Your real estate experience matters.
Buying or selling a home (especially for the first time) can be nerve-racking. To alleviate teh anxiety, we emphasize educating our clients so they understand what to expect during their real estate journey. If you would like to chat about buying or selling a home, schedule your FREE consultation today by clicking the link below!
James Paul Valerio
Broker & Owner of The Valerio Group, Inc.
DRE #02001410
