Housing and Urban Development Secretary Julian Castro sees big opportunity in the housing market this year, with the easing of credit opening the door to more buyers.
“I see 2015 as the year of housing opportunity, particularly home ownership,” Castro told CNN. “A good example of that is the reduction in the FHA mortgage premium.”
Castro points to the recent move of the Federal Housing Administration, which reduced its insurance premiums from 1.35 percent to 0.85 percent. The reduction is expected to amount to about $900 per year for borrowers. Castro says the reduction in premiums will likely spur a quarter of a million more home buyers in the next three years.
Also in expanding home loan opportunities, mortgage financing giants Fannie Mae and Freddie Mac recently announced they will allow FHA mortgage premium to qualify for loans with down payments as low as 3 percent.
Source: “2015: The Year to Buy a House,” CNNMoney (Feb. 2, 2015)