FHA is the loan program most frequently used by first time home buyers. In central Texas a FHA loan can be used to purchase a home up to a maximum of slightly less than $300,0000.
FHA is planning changes to meet the requirements that congress establishes to maintain a solid fiscal program.
One of two major changes is an increase to the monthly mortgage insurance of .10%. On a $200,000 purchase this will increase the monthly payment by $16 per month. Over a 10 year period this will add just under $2000 to the cost of home ownership for a FHA borrower.
The bigger change is to the term of the monthly mortgage insurance. Because FHA insures the loan for the life of the loan, FHA plans to require that monthly mortgage insurance span the entire life of the loan. This will add 20 years of mortgage insurance to the current 10 years that most FHA loans can experience. This change will add in excess of $52,000 to any FHA borrower who holds their loan for a full 30 years.
ACT NOW to avoid these increases if you are considering a FHA home loan. We can get you in your home immediately and save you money if you take action ahead of these changes. 512-431-5223