Eye on the Market
Will an FHA Shortfall Affect Snellville Home Sales?
Borrowers will likely see higher premiums on mortgage insurance, among other things, as the FHA could soon request a government bail-out.
For the first time in its 78 year history, FHA may be facing the spector of a taxpayer bail out. The agency faces a 16.3 billion dollar deficit in a report issued to Congress. How FHA will counteract this is by increasing insurance premiums by .01 percent, increasing the average payment for a mortgage holder by around $13 a month. They will also sell 1000 delinquent loans a quarter and increase short sales. For buyers and our recovery (existing home prices placed another annual gain in October for the eighth month in a row), losing FHA financing would be detrimental. FHA financing allows buyers to purchase a home with 3.5% percent down, allowing more folks to take advantage of the low interest rates. I had a couple just purchase a …
