Richard's Real Estate Thoughts - Chattanooga TN Mortgage Lender: FHA lowers monthly mortgage insurance

FHA lowers monthly mortgage insurance

FHA has reduced their monthly mortgage insurance premiums.

This reduction means lower mortgage payments for home buyers using FHA financing. The reductions for the typical single family home buyer in Chattanooga will lower the mortgage insurance for a $150,000 loan about $100 monthly to about $75.

This change brings FHA loans mortgage insurance closer to the conventional, low down payment, first time home buyer programs, such as Home Possible and Home Ready.

With the generally lower interest rates that FHA loans typically have, FHA will be a more attractive option for qualified buyers.

Some of the more important home buyer benefits that FHA home purchase loans provide home buyers:

  • Low down payment – minimum investment is 3.5% of the sales price

  • Seller contributions to buyer closing cost up to 6%

  • Gift funds allowed for buyer funds to close

  • Lower credit scores typically accepted, compared to conventional loan programs

With the new, lower FHA monthly mortgage insurance premiums, FHA loans are now an even better option for home buyers.

Call to compare low down payment home purchase loan programs. We offer USDA, FHA, VA, as well as FHA and the conventional, 3% down payment, loan programs, Home Possible Advantage and Home Ready.


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Richard Smith
NMLS# 184479 TN# 104002 GA# 28928 

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,

Rural Development ( USDA), and Jumbo Loans


Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Sierra Pacific Mortgage

Cell phone: 423-280-0345 Email: Richard.Smith@SPM1.com

Visit my website to inquiry about a home loan.

Read my most recent articles in Scotsman Guide.

This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Sierra Pacific Mortgage. 

Comment balloon 1 commentRichard Smith • January 11 2017 05:57PM

Comments

An update. There may be a delay with implementing the lower FHA MI premiums, pending a review by the incoming administration.

Posted by Richard Smith, FHA VA Rural Development in TN GA (Sierra Pacific Mortgage) 7 months ago

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