Lower Rates For FirstTime Homebuyers Thanks To FHA Rate Cuts

Dated: 01/17/2017

Views: 876

Image title

According to Bloomberg News, the Obama administration cut mortgage-insurance premiums charged under a government program that’s popular with first-time home buyers who have little money for a down payment.


Earlier last week the Department of Housing and Urban Development (HUD) said the annual fees charged by the Federal Housing Administration (FHA) to guarantee mortgages it backs are being cut by a quarter of a percentage point. With the reduction, the annual cost for most borrowers will be 0.60 percent of the loan balance.


The reduction, which lowers the cost of a home for those who use the FHA, is charged to mortgage borrowers. HUD on Monday said the fee cut would save new FHA-insured homeowners an average of $500 this year. The cut would take effect on Jan. 27.


In a statement reacting to the news, William Brown, president of the National Association of Realtors said that dropping mortgage insurance premiums today will mean a whole lot more responsible borrowers are suddenly eligible to purchase a home through FHA. 



The change could be reversed after President-elect Donald Trump takes office; however, HUD Secretary Julian Castro said he had no reason to believe the cut would be altered by the Trump administration.


If you’re ready to take advantage of these more favorable rates and become a homeowner in the Denver area, the experienced pros at Metrowest would love to help you start the process. Give us a shout today!

Latest Blog Posts

Want To Live On The Sunny Side Of Denver

As the neighborhoods in close proximity to Denver are becoming more crowded and pricey, would-be buyers are flocking further from the city to check out up and coming areas where prices may be a

Read More

Denver Market Spring Highlights

The most recent data from the Denver Metro Association of Realtors (DMAR) shows the spring selling season is off to a strong start in Denver, with sellers going for top dollar and buyers

Read More

Best Denver Neighborhoods For First Time Home Buyers

With low inventory and high home prices in Denver, first-time buyers are often overwhelmed with how quickly homes sell and discouraged with the lack of options for their first starter house. It’s

Read More

Overland Exploring Denvers Very First Neighborhood

Once run down and somewhat undesirable, Overland, Denver’s very first settlement, is now in the midst of an overhaul as once-empty storefronts along South Broadway fill out with a variety of

Read More