Will The FHA Lower FHA MIP Again? – November 16, 2023

Video Transcript

the FHA released its annual report to Congress this week on the health of its Insurance Fund and the report looked strong which could mean good news for future home buyers in the form of lower FHA mortgage insurance rates the fha’s Insurance Fund backs the FHA mortgage Market itself and when the fund performs well builds up reserves it means that the FHA is less likely to run out of money imagine an insurance company over collecting because it forecasts a disaster and then that disaster never came that’s kind of what happened at the FHA home values are up housing is outperforming expectations and so are homeowners default rates far below the average is the last 15 years and now the fj’s reserve ratio the amount of cash on him relative to its potential claims it’s over 10% that’s more than five times the amount required by law the FJ fund is healthy so if it wanted to the group could lower its mortgage insurance premiums for the second time in two years won’t happen this week but it could happen soon it matters where you get your mortgage news so get it here I’m Dan with home buyer.com the mortgage company for firsttime buyers happy home buying