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California FHA Loans: FHA Loans Fueling CA Housing Market, Changes to MI

FHA loans are fueling the California housing market, accounting for nearly 1/3 of  new mortgages used to finance a home purchase in CA.

FHA mortgage rates remain the same as conforming mortgage rates; however, there's some differences in closing costs and by differences I mean additional fees.

APR on FHA loans is significantly higher than that of a conventional mortgage because of MI and other fees charged by the Federal Housing Administration. MI, which is charged as a percentage of the loan amount just like origination and discount points, will be boosted to 2.25 on April 5th. So it's about to get more expensive to purchase a home with an FHA loan.

CA mortgage professionals may want to consider moving to FHA mortgage leads, that's where the market is headed, especially when refinance wanes. Also CA mortgage pros might want to consider a mortgage net branch alternative with FHA capabilities.

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