*Update 1/24/16* The expected cuts to the mortgage insurance premiums have been suspended by the Trump administration. Stay tuned to this blog an The National Association of Realtors website for more information.
If you are a low – mid income home buyer or are shopping for your first home, this affects YOU! In November, the Federal Housing Administration released it’s report on the Mutual Mortgage Insurance Fund which could spell good news for you. What is the Mutual Mortgage Insurance Fund (MMIF)?
A fund that insures mortgages made by the Federal Housing Administration (FHA) on single-family homes. Mortgagors pay into the fund with a one-time premium of 1.5% of the loan amount, paid at closing, and annual mortgage-insurance premiums of 0.5% of the loan amount, which must be paid until the mortgagor has 22% equity in the home.
The Mutual Mortgage Insurance Fund pays the lender if the mortgagor defaults. Borrowers who have FHA mortgages are considered higher risk because of the low down-payment requirement and looser income and credit requirements on FHA loans.
Basically, it helps take some of the risk out of lending which helps you buy your dream home!
The report states that the fund is on very sound financial footing exceeding it’s financial targets set by the Congress. This is good news for low – mid income households and first time home buyers. Right now, the National Association of Realtors is working with the Federal Government to lower mortgage insurance premiums even further putting more money in your pocket!
Don’t let fear of the mortgage process stop you from owning your dream home. Now is a great time to buy on the beautiful Alabama Gulf Coast. Like I always say, “You can afford the beach”!
Call me today at 251.233.9273 or email me at firstname.lastname@example.org to learn about condos and homes for sale in Orange Beach and Gulf Shores.