FHA will reduce the mortgage insurance premium it charges from the current 1.35% to .85%, according to an article in the Wall Street Journal.
President Barack Obama is scheduled to make an announcement on January 8, 2015.
FHA mortgages are popular because borrowers can obtain loans with as little as 3.5% downpayment. The credit standards also tend to be a little more lenient than most conventional loan standards.
Here is link to the Wall Street Journal article with more details. I am sure there will also be more information after President Obama’s speech on Thursday.
This would be great for those who desire to use FHA insured mortgages to buy homes.
For more information on using an FHA loan to buy a home in Towson or the Baltimore area, please contact me. I would love to help!