Wow is all we can say. While not completely unexpected after the complete collapse of the housing market across the U.S. but a tough pill to swallow. FHA won’t state when only that it is in fact going to happen. The FHA Private Mortgage Insurance that is currently paid until the loan-to-value drops to 78%, typically taking about 10 years for most homeowners, will eventually change to be paid through the life of the loan.
Interested buyers need to act quickly to avoid this life of the loan payment which is typically a few hundred dollars a month on top of the Loan, Interest, Property Taxes and Homeowners Insurance. If you are a first time home buyer or other buyer looking to use an FHA loan to get in with the least money out of your pocket, waiting too long may add 10’s of thousands of dollars to the cost of your loan across the life of the loan.
