FHA Loans continue to get more expensive

FHA has just announced that their upfront and monthly premiums will be going up again. And for loans with less that 10% down, the borrower will have to pay mortgage insurance for the life of the loan. FHA is a great product for buyers who don’t have a large down payment and/or don’t have strong credit. BUT, buyers will be forced to pay a huge premium every month in return for the low down payment. It looks like FHA wants to get out of the loan business.

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