What does the halting of the FHA premium cuts mean? - KULR8.com | Montana's News Leader | Billings, MT

What does the halting of the FHA premium cuts mean?

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President Donald Trump stops regulations former president Barack Obama put in place to cut FHA mortgage insurance premiums. Obama's team announced in early January they had put in place a reduction for those taking out government-backed home loans.

FHA loans seem to be popular with first time buyers and low income households because they don't require a high credit rating.

Although the regulations currently are blocked, the situation may only be temporary. The federal housing administration says it is "suspended indefinitely." The cut was supposed to go into effect on January 27th and would have been a quarter-of-a-percentage point.

Pamela Adams with Guardian Mortgage said conventional loans also are an option where, under federal law, the premium drops after 78-percent of the life of the loan.

Although FHA backs a high percentage of all new mortgages, Rod Wilson, a Billings real estate agent says the premium for FHA is higher than a conventional loan.

 He says he doesn't think the stoppage will have a terrible change on the housing market in billings.

If you're looking to buy a house and don't think you can afford it, don't give up! You can always meet with a broker, banker or any mortgage professional. 

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