FHA has reduced the Amount of their Mortgage Insurance

The Trump Administration has rescinded this FHA reduction in MIP

This is good news for many home buyers because it helps lower their debt to income ratio, so that FHA Buyers can qualify for a higher loan amount.

FHA loans require a 3.5% downpayment while conventional loans typically require higher down payments ranging from 5% to 20%. FHA loan products were originally created to provide creditworthy homebuyers with a solution if they didn’t have as much to put down as conventional loans require.

The higher Mortgage Insurance premium that FHA implemented a few years ago made it difficult for many young, first-time and lower-income borrowers to qualify or to qualify for enough to compete with other buyers in this frenzied real estate market.