Taxpayers Will Appreciate This Reversal Of HUD Policy On Private Mortgage Insurance
The FHA backs loans for millions of homeowners, offering more lenient credit requirements and allowing down payments as low as 3.5%. But borrowers are required to pay insurance premiums to help protect lenders in the event of a default. Low downpayment FHA loans are much higher risk loans.
CNN reported that the Department of Housing and Urban Development said Friday that the reduction to the annual mortgage insurance premiums borrowers pay when taking out government-backed home loans has been “suspended indefinitely.”