St. Louis Real Estate - Mortgage Insurance News

How quaint! Money down, good credit and some mortgage insurance and YOU could own a home.

FHA Mortgage Insurance May Change! by Chris Scheer, Branch Manager, Cornerstone Mortgage, O’Fallon, Missouri

HUD has announced a proposal to change the cost of both upfront and monthly mortgage insurance for purchases and refinances. This change is based upon loan to value and credit score. Their reasoning is that they want to be able to serve more borrowers and keep the opportunity for home ownership accessible to as many as possible. They have imitated a rate system that has been in place in the private mortgage insurance sector for years. Depending on how good your credit is and how much you put down or how much equity you have, your cost of the mortgage insurance will go down.

Why is this good?

As the secondary market continues to shy away from maximum financing i.e. 100% loans someone needs to step up to the plate to keep the ability to purchase lower priced homes feasible for most working class people. When they want and can purchase the starter home or the lower priced home, then the person selling that home has the chance to move up, which keeps the process moving right up the price scale.

You can view the proposed changes and get information on how you to can comment to HUD about this change here.

For your comments about this blog or any questions for Chris Scheer, please contact him at chrisscheer@stlouisrealestatevoice.com

This entry was posted on Thursday, September 27th, 2007 at 1:59 pm and is filed under First Time Home Buyer, For Buyers, For Sellers, Mortgage News, Real Estate News, Relocation Buyer. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.