FHA mortgage insurance is like that celebrity that you’ve watched change over the years. From their first awkward performance to their most recent blockbuster hit. You noticed subtle changes in the actor through the years.
Changes that are slight enough to shrug it off to a new haircut and aging. Then, your favorite network hosts a back to back run of the actors movies. As ending credits of the actors first movie roll into the opening credits of the stars latest release, you notice how multiple plastic surgeries have made the celebrity almost unrecognizable compared to the younger version. That is exactly how I feel about FHA mortgage insurance.
What is Changing with FHA?
Today’s FHA mortgage insurance looks nothing like FHA mortgage insurance from years back. The second round of FHA mortgage insurance changes announced in early 2013 is slated for this coming Monday June 3rd, 2013. In fact learn more here regarding the 2013 changes.
FHA Still a Good Option For Some Buyers
There is no hiding the fact that an Arizona FHA mortgage has become less desirable due to rising FHA mortgage insurance costs. In addition, the inability to eliminate FHA mortgage insurance has also home-buyers second guess FHA as the best home loan option. However, FHA still offers the following benefits to Arizona home-buyers:
- More lenient debt to income ratios allowing borrowers to borrow more than on many other mortgage options
- More lenient credit score requirements (FHA allows lower credit scores)
- Shorter post Bankruptcy, Foreclosure and Short Sale waiting time frames than many other mortgage options
- Lower down payment requirements than many other home loan options
While an Arizona FHA home loan may not be a buyer’s first choice, it may be their only choice and may allow them to achieve their dream of home ownership!
By Jeremy House