GREAT NEWS FOR HOME BUYERS !!!! FHA PREMIUM CHANGE

Great news, for my buyers.  FHA made TWO major enhancements this year.  1.  Loan limits raised from $281,500 to $310,500 (Tarrant County) and 2.  Reduced the monthly MI premium, i.e. on a $300,000 loan this equates to a $120 a month in savings!  HUGE!

GET READY…. IT’S COMING!

GREAT NEWS!!!

FHA PREMIUM CHANGE

  

“Highlights”

Ø Annual premium is being reduced 50 bps from 1.35% to .85% 

Ø There is no change to the upfront premium (1.75%) or the life of loan requirement

Ø Applies to all FHA loans

Ø Both purchases and refinance transactions will benefit from the premium reduction

Ø The Administration estimates:

·        800,000 homeowners will be able to refinance this year

·        250,000 new homebuyers over the next three years

And the big question is…….

When will the premium reduction be implemented?

The White House/HUD understand that homebuyers and borrowers wanting to purchase or refinance will wait until it is implemented…

HUD has indicated they will provide UPDATES…SOON!  So we are expecting it will be implemented very quickly.

So Stay Tuned… It’s COMING……

Housing market will pick up in 2015

Most housing analysts are predicting substantial growth in housing activity in 2015 - much more than was experienced during the past year. For example, it was predicted that the housing market will continue its recovery and gain momentum in 2015 after a disappointing 2014, according to the Wells Fargo Economics Group 2015 Economic Outlook entitled "A Whole New Ballgame."

Wells Fargo cited a number of reasons in the report for its optimistic housing market predictions for next year, namely easing of credit, job and income growth, and mortgage rates near their lowest levels in a generation, it was noted in a report from the National Association of Realtors.

The economists predict existing home sales, which dropped by 3.8 percent for the first 10 months of 2014, will grow by 4.1 percent in 2015. Single-family starts, which grew by just 6 percent (655,000 units) in 2014 due to a weak job market, slow household formation, tight lending standards, and a backlog of troubled mortgages going through the foreclosure process, are expected to make a comeback in 2015, according to Wells Fargo.