The fees for FHA loans will change this spring. This was announced several months ago, but here's a great New York Times article with details.
For those with existing loans, their refinancing fees will be reduced. For those who wish to purchase a home, their fees will rise. This will help homeowners who may wish to refinance. It doesn't help borrowers with new home purchases. The point may be moot, anyway. In our sizzling HOT market, it is unlikely that an offer with a low downpayment (like 3.5% or 5%) will not be attractive relative to offers with 25%, 50% or all cash. But still, markets in other areas are not acting like the market for real estate in Marin and San Francisco. So won't these fees hurt consumers? And isn't it the buyers we need to stimulate sales, help stabilize neighborhoods and help the economy? Do we really need borrowers subsizidizing existing homeowners in the FHA market place?
If you are thinking about buying or refinancing, please contact us and we can help you get connected with a lender or mortgage broker who can help.