The California Association of REALTORS (C.A.R.) recently released a statement of approval in light of President Obama’s announcement that the Federal Housing Administration (FHA) mortgage insurance premiums will be lowered by fifty basis points.
C.A.R. President, Chris Kutzkey said that, “Reducing FHA mortgage insurance premiums will make it easier for hundreds of thousands of home buyers to get a mortgage and provide greater access to homeownership for historically underserved groups and credit worthy families,” he continued by stating, “Moreover, this shift in policy will also increase the volume of borrowers using FHA-backed loans, while continuing to contribute to the solvency of FHA’s Mutual Mortgage Insurance (MMI) Fund and making the dream of homeownership a reality for millions more Americans.”
It was calculated that during 2013, about 400,000 borrowers who had good credit were priced out of the housing market because of the higher FHA insurance premiums. Overall, over the course of the past 4 years, the number of first time homebuyers using these loans has decreased from 56% to 39%.
So if you are looking to buy a home, take advantage of this opportunity now. These better rates won’t last and home prices will continue to rise during 2015. If you would like to work with a real estate expert who can help you to attain your real estate goals, then contact me today!