Just hours after being sworn in, President Donald Trump moved to suspend a plan to lower the Federal Housing Administration’s mortgage insurance premiums that had been set to go into effect on Jan. 27. The reduction had been announced on Jan. 9 by the outgoing Obama administration and Housing and Urban Development head Julian Castro.
Trump Places a Stop to FHA Mortgage Reductions
The reduction in premiums by 25 basis points, or simply a quarter percentage point, “has been suspended indefinitely,” as outlined by an FHA news release. “More analysis and research are deemed needed to assess future adjustments,” reported by FHA.
National Association of REALTORS® officials say they are disappointed by the decision. The association estimates that about 750,000 to 850,000 home buyers will face higher costs, and 30,000 to 40,000 new home buyers will likely be left on the sidelines in 2017 without the cut. FHA originally had estimated that borrowers could save an average of $500 per year with the reductions in position.
“We’re disappointed in the decision but will continue to make the case to reinstate the cut in the months ahead,” NAR President William E. Brown said.
Does this mean you are out of luck with purchasing a home? Absolutely not! We work with several lenders here in the Tampa Bay area who are ready to assist you with your purchase. To get started finding you your new home, give us a call at 813-300-7116 or simply click here and we will be in touch.
