FHA Loan Costs Increasing April 1st

FHA stands for Federal Housing Administration.  They provide a government insured loan program which allows a borrower to finance up to 96.5% of their home purchase.  This is beneficial for first time home buyers who do not have a lot of down payment. 

Part of the cost of FHA financing is their up front mortgage insurance premium which is charged on all FHA loans.  This premium will be increasing from 1% to 1.75% effective April 1, 2012.  If you finance more than 95% of the purchase you also have annual premiums which will increase from 1.15% to 1.25%.  The annual premiums will also be higher for loan amounts exceeding $625,500 effective June 11, 2012.

Moral of the story.  If you need to get an FHA loan, get one soon. 

For more information on financing or real estate contact us :(808)739-4174 | www.choicehomeshawaii.com

About the Author

Brandon Lau grew up in Kailua and currently resides in Honolulu with his wife Andee and children Caylah, Elijah, and David. His eighteen years in real estate led him to become a Partner at ChaneyBrooks Choice Advisors. Over the past 10 years he has developed the team and systems that has created a high level of service and value for his clients.

What differentiates Brandon and his team is his consultative approach to real estate. He advises clients with relevant data and expert insight to help them make the best choices in real estate. Good choices in planning for long term dispositions, negotiating for the best price or knowing when not to pursue an investment are ways his consultative services will give you an advantage in the marketplace. His bottom line is providing service with the utmost integrity and expertise.