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Premiums Increasing for FHA Buyers
Dated: February 10 2013
FHA will hike premiums on mortgages this year
The Federal Housing Administration stated last week that it will raise premiums on new mortgages it insures. Increases are expected to be about 10 basis points.
The FHA is also planning to raise premiums for borrowers with jumbo loans – loans of $625,000 or more. These loans will have new down payment requirements of 5 percent up from 3.5 percent.
Given that most buyers these days have been conventional, there will be a minimal impact. Also, the rise in premiums is so nominal given the historically low rates, most FHA buyers will shrug this news off and pursue the home of their dreams.