HUD Announces FHA PMI Relief coming in March
February 27, 2023 | Anthony Cosenza
Potential homebuyers will get a boost from the government next month with HUD announcing FHA PMI premiums being cut.
Part of the standstill that has occurred the past handful of months in the real estate market has centered around the rise of monthly costs for potential homebuyers. Well, that’s about to change, as HUD announces FHA PMI relief coming in March.
PMI is short for “Private Mortgage Insurance” which is usually attached to an FHA home loan. These types of loans are popular amongst first-time homebuyers and/or those who are unable to make a sizable down payment.
With the real estate market needing a kickstart since things ground to a halt late last year, the hope is that increased loan affordability will bring more buyers into the market. The first couple of weeks in February showed a nice influx of buyer demand and activity, with Orange County spiking at a 38% increase in transactions from the end of 2022.
Even though the frenzied market from mid-2020 to mid-2022 appears to be in the rearview mirror, our past advice to first-time homebuyers during that period applies even more today, in terms avoiding pitfalls. Having the right real estate representation and associated partners on your team when buying a home remains key.
Even so, what comes when HUD announces FHA PMI relief coming in March is a pretty substantial break for buyers on the monthly payment front. Estimations have buyers potentially saving an average of $800 per month in payments toward a home purchase.
If you have questions on what this may mean for you as a homebuyer, or on the flip-side, if you are looking to sell your home because of this measure, please contact us! And, if you need a referral to a trusted mortgage professional to give you a picture on what you can be qualified for and/or what your monthly payment on it could look like, we would be happy to make an introduction.