The Department of Housing and Urban Development (HUD) announced a 30-basis point reduction to annual mortgage insurance premiums charged to home buyers who get an FHA-insured mortgage.
The average FHA borrower purchasing a single-family home with a $265,000 mortgage will save approximately $800 in 2023 as a result of the reduction. For a borrower with a mortgage of $467,700, which is the national median home price for December 2022, the reduction will save more than $1,400 in the first year of their mortgage.
In addition to providing overall savings to borrower, HUD says this premium reduction will allow more people to qualify for a mortgage. “For this country to truly succeed, all Americans must have access to opportunity. That means expanding access to wealth building and home ownership,” said HUD secretary Marcia Fudge. “As we reduce housing costs for people with FHA mortgages, we continue our work to address long standing disparities in homeownership.”
Resource Financial President and CEO A. Wade Douroux says the reduction is welcome news, providing new opportunities for qualified FHA borrowers just in time for the spring home buying season. “These savings will help many first time home buyers enjoy the stability and wealth creation of home ownership,” he says. “When you buy your first home, you’re making a life-changing investment. We are excited to help borrowers begin that journey through an affordable FHA-insured mortgage.”
To learn more about HUD’s reduction in annual mortgage premiums, read the official press release here. To see if you qualify for an FHA-insured mortgage, call us toll-free at 877.797.4545 to speak with a mortgage banker or visit Resource Financial Services online at rfsmortgage.com.
Resource Financial Services wants to make your dreams of home ownership a reality. Our experienced mortgage specialists educate homebuyers about the wide variety of loan programs tailored to meet individual financial needs. Our borrowers enjoy quicker closings, same-day pre-approval, 5-Day Processing and guaranteed lower rates.