Thought you might want a heads up on some changes announced today by HUD. Effective on all HUD case numbers pulled after April 18th, 2011 they are increasing their monthly MI factor by 25basis points. That equates to a $45 increase per month on a purchase price of 225k.
Last week the Obama Administration released their plan on the future of housing finance. They are uncomfortable with the current levels of government backed financing and want to reduce their exposure in the market in the future (5-8 years). Currently their market share is about 95% of all residential loans financed. ( I am including FNMA in on this as they are basically “owned” by the fed now )
This HUD decision is in my opinion one of the first of many that will serve to disincentives borrowers from doing FHA loans with government backed MI and incentives them to use conventional financing with private mortgage insurance by making the private mortgage insurance companies more affordable.
Source: John McClellan, Branch Manager, Supreme Lending Austin
A hopefully insightful, sometimes spicy, always truthful and brutally honest commentary on the world of real estate in Central Texas and now, more about life in Cedar Park, the best 'burb around Austin. This blog will give you a taste of what an experienced, talented REALTOR goes through in order to "Listen to dreams, Achieve Lifestyles" for clients!
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