The Federal Housing Administration has lowered the Mortgage Insurance Premium (MIP) from 1.35% to 0.85%. This is the first time the FHA has lowered the MIP since 2001. This move will bring more first-time homebuyers into the housing market as homeownership will become more affordable. The average household could save up to $80 on their monthly payment thanks to the reduction in premiums.
With the FHA lowering the MIP and Fannie Mae and Freddie Mac lowering their minimum down payment requirements, it’s a promising time to be a first time homebuyer. As the busiest season in real estate kicks off, it may be a great time for potential buyers to review their home financing options. If you or anyone you know is considering a home purchase this season, please don’t hesitate to contact me.