June 24, 2017

How Many Years Will I Pay FHA Mortgage Insurance? The Answer May Surprise You

Since being created by Congress in 1934 the Federal Housing Administration (FHA) has insured over 34 million mortgages on single family homes.  The low down payment requirement and relaxed credit standards of the FHA have allowed millions of people to achieve the dream of home ownership. While the advantages of an FHA mortgage are compelling […]

FHA Purchasers Immediately Have Negative Equity – The Buying Dilemma

Most first time home buyers who have done their homework know that there are both benefits and disadvantages associated with FHA mortgage financing. Real estate agents and the mortgage industry will typically stress the benefits of a low down payment requirement and flexible underwriting standards with FHA financing.  However, there are also disadvantages associated with […]

FHA’s 75% Increase In Mortgage Insurance Premiums May Hurt Housing Sales

After the implosion of Fannie Mae and Freddie Mac in 2008, the FHA was seen as the savior of the housing industry.  Liberal underwriting guidelines combined with a low down payment requirement made FHA financing the preferred choice for many home buyers.  As a result, the FHA’s share of total mortgage lending soared to almost […]

Sometimes, FHA Financing Is Not The Best Option For Homeowners

FHA mortgage financing offers the benefits of low interest rates, relatively liberal underwriting guidelines and low down payment requirements.  Sometimes, however, FHA financing is not the best option for a home buyer. One of the biggest drawbacks to FHA financing is the expensive mortgage insurance charged to borrowers.  In addition to being charged an upfront […]

FHA Mortgage Insurance Increase Tied To Payroll Tax Cut Is Bad News For Homeowners

The attempt by legislators to extend the payroll tax reduction has resulted in proposals to increase the mortgage insurance premiums on FHA loans. Originally, the Senate had only proposed increasing the guarantee fees charged by Fannie Mae and Freddie Mac on sales of mortgage backed securities.  The estimated fee increase of 12.5 basis points would […]