What Does This Mean for Tampa Home Buyers?
The reality is that this will only slightly increase a home buyer's monthly payment. For example, on a $175,000 loan amount the payment will increase by about $15 per month, based on the new premiums.
Another change is the length of time the mortgage insurance will remain in effect. The mortgage insurance will now be for the life of the loan. This is inconsequential however, since rarely do borrowers keep loans for the full life of the loan. Typically the Tampa homeowner will refinance or sell their property before the loan going to full-term.
Even though monthly FHA payments will increase a bit, FHA still remains the most flexible and affordable loan program for buyers with less than a 5% down payment, favorable debt-to-income "back-end" ratios, and qualifications for Buyer's to accept up to a 6% concession from the Seller.
The good news is that home loan rates are still at historic lows right now, and it's a great time to purchase a new home in Tampa. If you have any questions regarding these changes or would like to discuss how I can help Tampa home buyers get qualified for a mortgage, please let me know!
Josh Parker is the Team Leader of ProFusion Property Group, located in the Trinity & Odessa area, and an active Tampa YPN Committee Member. ProFusion Property Group specializes in the listing & sale of residential real estate all over Pinellas, Pasco & Hillsborough County. His team has successfully sold over 175 units for their clients in 2012, while maintaining an exceptional “sold price to list price” statistic of 99.08%. For more information, free tips, and free home searches, please visit Josh & the ProFusion Team at www.profusionpg.com!