Real Estate
Will an FHA Shortfall Be 'Detrimental' for Lilburn Home Sales?
Borrowers will likely see higher premiums on mortgage insurance, among other things, as the Federal Housing Administratin could soon request a government bail-out.
For the first time in its 78-year history, the Federal Housing Administration may be facing the spector of a taxpayer bail out. The agency faces a $16.3 billion 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 1,000 delinquent loans a quarter and increase short sales.
For buyers and our recovery (existing home prices placed another annual gain in October for the 8th 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 home for $158,000 and their payment is under $1,100 a month with an FHA loan, way cheaper than renting an equivalent home.
By the Numbers:
179 Active Listings
111 Average Days on the Market
$189,024 average list price
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