How Will Trump Affect Real Estate
The full impact remains to be seen, but here’s a start – on day one the Trump administration has already taken action that affects real estate – the permanent suspension of the FHA 1/4 % Mortgage Insurance Premium Reduction announced just last week. This reduction was estimated to save buyers about $500 a year – so while not a deal breaker for most buyers, the mortgage and real estate industry naturally welcomes anything that will help buyers qualify for a loan. The good thing, at least for now – the FHA loan limits for the Atlanta Market recently increased to $358,800 which makes this loan a great option for more buyers – especially those who need (or want) to take advantage of the minimum 3.5% down payment – most other loans require 5% down.
From Mortgage News Network:
The Department of Housing and Urban Development (HUD) issued a statement that the reduction in the Federal Housing Administration (FHA) mortgage insurance premium that was announced last week has been suspended indefinitely.
“FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers,” the HUD statement said. “As such, more analysis and research are deemed necessary to assess future adjustments while also considering potential market conditions in an ever-changing global economy that could impact our efforts.”
The HUD statement added that “FHA will issue a subsequent Mortgagee Letter at a later date should this policy change.”
This is going to be an interesting year, and I predict more policy changes – hopefully for the best of the consumer and the country.