FHA Loan Changes Impact First Time Home Buyers
First time buyers using FHA financing should be aware that the FHA recent announced policy changes that will increase the cost of FHA financing. Soon, the Mortgage Insurance Premium that is required on low down payment FHA loans will increase from 1.75% to 2.25%. This will result in an increase in over all loan cost and also a slight increase in the monthly payment FHA borrowers will see.
