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What Does the Government Shutdown Mean for You?

by Lisa Bray

What Does the Government Shutdown Mean for You? 

What does the government shutdown mean for you? This seems to be the question of the day. With no resolution in sight, people across the nation are wondering how this will impact them, especially those who are planning to purchase a home with an FHA loan.

With limited staff, FHA underwriters are still working but other branches of the government that are currently close will limit access to important documentation required for loan approval. Most lenders require IRS transcripts and social security verification as a part of the loan approval documentation. Both of these government departments are working with limited staff.

Although the FHA is still technically working, the loan process could be delayed due to the shutdown. Regardless of this news, buying a home is still a good idea and as with any current event, the information available changes daily.

If you are interested in purchasing a home with an FHA loan, I would encourage you to speak to a qualified lender before you make any decisions regarding the government shutdown. Working with an experienced, knowledgably loan officer is imperative, especially during a time like this. If you need a recommendation, please call me today.

Lisa Bray

RE/MAX Professionals
www.LisaBray.com
602-762-3691

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3 Things You Need to Know About the New FHA Premium Reduction

by Lisa Bray

3 Things You Need to Know About the New FHA Premium Reduction

Good news for potential buyers interested in purchasing an Arizona home this year. As of January 26th the Federal Housing Administration (FHA) has reduced the annual mortgage insurance premiums that new borrowers will pay from 1.3 percent to .85 percent. Here are 3 things you need to know about the new FHA premium reduction.

1.) Improving Economic Conditions

U.S. Housing and Urban Development Secretary Julián Castro announced in December of last year about the FHA’s plan to reduce the annual Mortgage Insurance Premiums (MIP) new borrowers would need to pay by half of a percent. The FHA’s recent annual report to Congress demonstrates the economic condition of the agency’s single-family insurance fund continues to improve, adding $21 billion in value over the past two years. 

2.)  Saving Homeowners Millions

The FHA’s new premium reduction is estimated to save more than two million FHA homeowners an average of $900 annual and spur 250,000 new homebuyers to purchase their first home over the next three years. The reduction will also significantly expand access to mortgage credit for these families and is expected to lower the cost of housing for the approximately 800,000 households who use FHA annually.

3.) New Loan Limits

FHA loans with balances above the loan limits in effect in most areas and with current MIP of 1.50 to 1.55 percent will see new premiums of 1.00 or 1.05 percent respectively. The upfront premium for all loans will remain unchanged at 1.75 percent. Borrowers with FHA Case Numbers issued on or after January 26 will be eligible for the new premium rates. Borrowers that were already in the process of getting their FHA loan will temporarily be allowed to cancel Case Numbers issued before that date through their lenders.

If you are looking to purchase an Arizona home this year and would like more information about qualifying for a home loan in the West Valley, please contact Lisa Bray today!

www.LisaBray.com

602-762-3691
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More Than Just A Home

 

Displaying blog entries 1-2 of 2

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