At eHousingPlus, our focus is providing solutions to our Housing Finance Agencies (HFA) partners that help them administer Affordable Housing, Homeownership, and Single-Family Programs. Recent adjustments made by HUD will further enable HFAs to use their programs to serve underserved Americans across the U.S. to become first-time homebuyers by qualifying for an FHA-insured mortgage.
HUD will reduce the annual Mortgage Insurance Premiums (annual MIP) by 30 basis points. As a result, the premium on FHA- insured mortgages will drop from 0.85% to 0.55%. This reduction could indicate that there would be an estimated savings of $678M for American families in aggregate by the end of 2023 alone.
Through HUD’s newly implemented changes, Lenders will now be able to use Affordable Housing Programs to qualify a larger population of nontraditional borrowers. The new guidelines include considering positive rental history when determining a borrower’s creditworthiness for an FHA-insured mortgage. Additionally, borrowers making student loan payments can now qualify for an FHA-insured mortgage through a modification by HUD in how student loan debt is assessed during the FHA screening process. Lastly, all qualifying property types, such as single-family homes, condos, and mobile homes, are also covered.
Kudos to our HFA partners for your ongoing commitment to providing opportunities to fulfill the American dream of homeownership.
These reduction of the annual MIP for mortgages will be effective with loans submitted for endorsement by HUD effective on or after March 20, 2023. To read the full Press Release, CLICK HERE.