FHA Mortgages To Get More Challenging In 2015

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FHA Mortgages

Will FHA Mortgages get more challenging for home buyers in 2015? Learn more here.

By Jason Boone

As of today home buyers who choose FHA mortgages can expect to pay an upfront fee of 1.75% to the FHA and 1.35% for their Mortgage Insurance Premium.

With home prices going up in Oregon and across the United States many Realtor’s and economists feel that FHA mortgages are becoming less affordable than they once were.

Now HUD is proposing another fee which will make their mortgages even less desirable as we move into 2015.

What To Expect From HUD

The new fee which the FHA is proposing will be 4 basis points more or $40 for every $100,000 which a home buyer borrows.

Although this proposed fee doesn’t seem like much it can mean the difference between a home buyer qualifying for a mortgage or not because it will increase their Debt-To-Income ratio and ultimately prevent them from qualifying for their own mortgage loan.

Why Is HUD Proposing This New Fee?

HUD has gone through a lot of changes recently and there’s been an increased demand on their services since the Real Estate crash of 2007.

As we move into 2015 HUD’s technology is growing outdated and they plan on using revenue from the new fee to update their system but most people feel that charging consumers more to update their outdated technology is a bad idea.

Will Senate Bill 2438 Affect FHA Mortgages?

HUD’s proposal (Senate Bill 2438) to add a new fee which will affect FHA Mortgages is expected to go before the Senate within the next few weeks.

What do you think about Senate Bill 2438? Feel free to leave us a comment below!

To learn more about the latest Real Estate news which affects you, or to view homes for sale across Bend Oregon, contact me, Jason Boone, Principal Broker with (541) 383-1426 or click here to contact me through my website.

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