July 28, 2015
The FHA and HUD are reminding borrowers about an important change made to the FHA single family home loan program in conjunction with a new HUD press release titled, “A Year of Progress: Delivering on the Promise of Opportunity”.
The Department of Housing and Urban Development is approaching its fifth decade of service. The press release states, “As HUD approaches its 50th anniversary, Secretary Castro is laser focused on advancing policies that provide folks with access to quality housing, good schools, transportation and economic opportunity. We recognize housing as a platform for Americans who are striving to improve their lives and break the cycle of poverty for the next generation. As needs for our services have increased, HUD will continue to invest in initiatives that have demonstrated outcomes in helping the people we serve.”
In the last year, the FHA and HUD have announced initiatives to help people improve their lives, but the most relevant of those for FHA borrowers is the reduction in annual insurance premiums–something that saves hundreds of dollars every year, according to the press release:
“On January 8, 2015, Secretary Castro announced that the Federal Housing Administration (FHA) would reduce the annual premiums for new borrowers by half of a percentage point. This action is making homeownership more affordable for responsible families. It is helping save an average of $900 annually for more than 2 million borrowers over the next three years. It is also projected to spur 250,000 new homebuyers over the same time period.”
That reduction in premiums was announced in Mortgagee Letter 15-001. “This action will make homeownership more affordable for over two million Americans in the next three years, said U.S. Department of Housing and Urban Development Secretary Julin Castro in ML-15-001. He adds, Since 2009, the Obama Administration has taken bold steps to reduce risks in the mortgage market and to protect consumers. These efforts have made it possible to take this prudent measure while also ensuring FHA remains on a positive financial trajectory. By bringing our premiums down, were helping folks lift themselves up so they can open new doors of opportunity and strengthen their financial futures.
The reduced annual premiums became effective for borrowers with FHA loan case numbers assigned on and after January 26, 2015. While that’s not the only initiative recognized by the FHA and HUD in their latest press release about the opportunities promoted by the agencies in the last year, it may be the most important one for those currently seeking an FHA mortgage loan.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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