The FHA announced important changes to the pricing of its mortgage insurance on January 8, 2015. This change will help to shore up the long-term solvency of its mortgage insurance fund, improve affordability and sustainability for most borrowers, and price in a significant number of borrowers locked out of the market in recent years. It will also provide a strong signal, along with solid recent employment growth and lower mortgage rates, to first-time buyers who might be on the fence. Its not the silver bullet, but an important step toward normalization of the housing market.
Read more on the NAR Economists’ Outlook Blog
To learn more about FHA loans go to http://portal.hud.gov/hudportal/HUD?src=/buying/loans