FHA Premium Reduction to Help New Homeowners
The President of the United States, Barack Obama, has been picked to announce a half-point reduction in the annual Federal Housing Authority (FHA) premium that borrowers have to pay. Some experts expect this to help more homeowners buy lifting the prospects of those in the housing industry such as brokers and builders.
The .5 reduction is no chump change according to the FHA. It could result in a $9,000.00 per year for eligible homeowners! Obama just gave these folks a $9k check! If you are considering buying or refinancing definitely look at FHA loans to get your savings.
The premium is what FHA charges to guarantee loans to private lenders giving access to more homeowners by minimizing risk for investors.