FHA mortgage insurance premiums – going down

Earlier this year, President Obama announced that HUD will lower its FHA mortgage insurance premiums by 50 basis points, from 1.35 percent to .85 percent, effective Jan. 26.  This move will make it easier for hundreds of thousands of home buyers to get a mortgage and provide greater access to homeownership for historically underserved groups and credit-worthy families.  On a $300,000 loan, that could mean a savings of $1,500 a year.


The annual mortgage insurance premium for most FHA transactions has been reduced. What does this mean for you?

· Monthly savings: borrowers can purchase a home with the lowest possible total monthly mortgage payment. For those with an LTV greater than 95% or high credit scores, FHA financing will provide a lower total monthly mortgage payment than conventional loans with private mortgage insurance.

· Repeat homebuyers are eligible for high LTV financing: conventional loans with private mortgage insurance restrict LTVs greater than 95% to first-time homebuyers. Alternatively, FHA financing is available for first-time homebuyers and repeat principal-residence purchasers with LTVs up to 96.5%.

· Qualify more buyers : A lower total monthly mortgage payment results in a lower DTI ratio, potentially allowing more borrowers to qualify for mortgage financing.

· Afford more home: You may be able to purchase a more expensive property without increasing their total monthly mortgage payment.

· Refinance savings: Clients who have recently purchased a home with FHA financing may be eligible to refinance their mortgage and lower their total monthly mortgage payment for immediate savings.


This is great news for homebuyers!   Call us for more information!


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The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices – Drysdale Properties

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The Caton Team - Realtors

Sabrina & Susan are native Californians - born and raised in the Silicon Valley with a passion for Residential Real Estate. A mother and daughter-in-law duo called - The Caton Team. With over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time. Call | Text at: 650-799-4333 | Email Info@TheCatonTeam.com The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true. The Peninsula is our backyard - let us help make it yours. We represent Buyer’s and Seller’s throughout the Bay Area. The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?

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