FHA insurance premium hikes will impact high wage earners most

By golfplan18   Follow   Sun, 3 Feb 2013, 11:34pm PST   247 views   1 comment   Watch (0)   Share   Quote   Permalink   Like (1)   Dislike  


Housing markets in Coastal California are dominated by high wage earners. In the more affluent markets, the GSE conforming loan limit is $625,000, yet the FHA limit is $729,750. GSE conforming loans can be obtained with only 5% down with private mortgage insurance of around 0.62%. FHA loans previously could be obtained with 3.5% down with an PHA insurance premium of 1.25%. The FHA loan which only requires 3.5% down instead of 5% has been very popular despite the onerous insurance premiums because after a massive debt binge and severe recession, most potential homebuyers are still broke.


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Oil Can   befriend   ignore   Sun, 3 Feb 2013, 11:40pm PST   Share   Quote   Like   Dislike     Comment 1

The changes by HUD reflect the real cost of low down payment programs.

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