FHA Price Increase not as bad as Expected
The US Department of Housing and Urban Development (also known as FHA) has raised it mortgage insurance fees. For mortgages utilizing the minimun down payment of three and one half percent, the upfront mortgage insurance premium has increased from 1% to 1.75%. And, the monthly mortgage insurance premium has increased from 1.15% to 1.25%. The good news, is that this increase was not as bad as some had expected. FHA is still a great financing option for those with relatively lower credit scores as compared to Conventional Financing. If your credit score is over 720, consider utilizing Conventional Financing with 3% down. With this, there is no up front mortgage insurance and the monthly mortgage insurance is considerably less than what FHA is. Contact John to see which option is best for you in today’s marketplace.
