No Politics…Just answers!!!
Over the past few days Real Estate agents and Mortgage lenders have received thousands of phone calls wanting to know how the new FHA premiums will affect them. First of all we have to put politics aside and just look at facts.
How much do FHA loans get used?
During the federal government’s 2016 fiscal year, the FHA insured 1.26 million purchase loans and refinances for single-family homes. Nearly 880,000 of those were purchases, worth more than $171 billion.
In the second quarter of 2016, FHA-backed loans accounted for 16.6% of single-family home loans, according to HUD.
How will this affect my FHA loan?
After paying an upfront insurance fee, you will pay 0.85% of your loan amount for premiums each year. So what does that mean? The biggest thing is your payment will be slightly higher which may mean you need to readjust your purchase price to keep yourself in budget.
So how much are we talking about? On average the home buyer looking at a $200,000 home would be looking at approximately $500 per year more in payments.
What should be your next move? CALL US! Southwest Missouri Realty will help put you in contact with trusted lenders who will help guide you through the process of home buying.