February 25, 2024

Do FHA Low Down Payment Loans Make Financial Sense?

Home ownership rightfully remains the goal of many Americans and a plethora of government loan programs run by agencies such as the  FHA, VA and USDA all provide mortgage programs with little or no down payment requirements. Before buying that dream home, however, a borrower should analyze whether or not it makes financial sense to […]

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 […]

FHA Mortgage Insurance Compared To Private Mortgage Insurance (PMI)

FHA financing remains the only mortgage option available to many borrowers able to make only a minimal down payment for a new home.  Offsetting this advantage, however, is the high cost of FHA mortgage insurance . Due to a large number of loan defaults, the FHA was recently forced to raise monthly mortgage insurance premiums […]