President Barack Obama is slated to make an announcement on Thursday that will make many potential homebuyers happy.
At a speech in Phoenix, the president will announce a reduction in mortgage insurance premiums for Federal Housing Administration (FHA) loans from 1.35 percent to .85 percent of the total loan amount. Reuters reported the news Wednesday morning.
FHA loans are particularly popular with first-time buyers as they allow borrowers to put down as little as 3.5 percent of the home purchase price.
In 2012, the upfront insurance premiums for FHA loans were adjusted from 1 percent to 1.75 percent of the base loan amount to boost the agency’s dwindling reserves. The move to reduce the premiums comes as the FHA is now back in the black.
This article originally published at https://dc.urbanturf.com/articles/blog/obama_to_announce_reduction_in_insurance_premiums_for_fha_loans/9377.
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