HUD has announced a .30% cut to the annual mortgage insurance premium of FHA home loans.
That means for someone who is purchasing a home and putting down a 3.5% down payment and borrowing say $500,000, the monthly mortgage insurance cost was cut by $125 per month or $1,500 per year.
For 30 year fixed FHA loans with a 3.5% down payment, the annual mortgage insurance
Premium was reduced from .85% to .55% and for a 5% down payment, mortgage insurance costs was reduced from .80% to .50%
Here in Phoenix metro area FHA loan limits are currently $530,150 and these loans are not limited to first time home buyers.
In addition, FHA loans can be used for purchase or refinance. Recently there were some additional costs announced around conventional cash out refinance loans. So, if you are considering a cash out refinance, the new change makes an FHA loan a very strong loan program to consider
The FHA home loan is still a widely used home loan program, that offers low down payment, low interest rates and flexible credit options for both first time and repeat home buyers.
The program continues to serve a wide range of homeowners, who may not either qualify for a conventional loan (due to credit or down payment requirements) or who may just find that the FHA loan is more affordable for their specific needs.
As always everyone’s individual situation is unique and it is always best to speak with a licensed lender, such as Strategic Mortgage and explore all available home loan options, for your specific situation
For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 703-5844 or by emailing: bill@strategicmtgaz.com or online at www.strategicmtgaz.com
Strategic Mortgage, LLC - NMLS#158804- Equal Housing Lender – AZBK#0909514
Vasilios Bill Kamboukos Jr – NMLS#160440
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