The Federal Housing Administration (FHA) has announced a 30-basis-point reduction to the annual mortgage insurance premium (MIP) charged to borrowers. The cut will take effect for FHA loans closing on or after March 20, 2023, and new FHA borrowers are expected to save an average of $800 a year. These savings will expand homeownership opportunities for qualified FHA borrowers.
Mortgage insurance premiums are paid as a monthly fee by FHA borrowers to insure their mortgages, a cost that is paid in addition to monthly principal and interest payments. FHA loans are popular with low-to-moderate-income homebuyers and offer a 3.5% down payment minimum, flexible credit score requirements and no first-time-homebuyer requirement or income limits.
Draper and Kramer Mortgage Corp. is a longtime provider of FHA loans and holds the oldest active FHA license in the nation. If you’re interested in learning about your homebuying options with an FHA loan or one of the other mortgage solutions we offer, please get in touch today for a free consultation.
Draper and Kramer Mortgage Corp. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the U.S. Department of Housing and Urban Development, the Federal Housing Administration or any other government agency.