LOS ANGELES, Feb. 22, 2023 /PRNewswire/ — The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today issued the following statement in response to the Housing and Urban Development’s (HUD) announcement to reduce the annual mortgage insurance premium on Federal Housing Administration (FHA) insured loans.
“Today’s move by HUD and the FHA to lower the annual mortgage insurance premium on FHA loans by 30-basis points will help increase homeownership opportunities throughout California, especially for first-time homebuyers and working Californians who rely on FHA financing,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “HUD and FHA play a pivotal role in providing housing opportunities for families throughout California, and for years, C.A.R. and NAR have asked the FHA to lower the mortgage insurance premium to ensure that homebuyers using FHA loans are not overpaying for their mortgages.”
The FHA’s premiums and reserves have been very high for many years, which many believed was necessary due to the pandemic; however, now that the COVID crisis is waning, reducing the FHA mortgage insurance premium is the right decision.
In 2022, California originated the third highest number of FHA loans in the nation. Last year, one in 10 California homebuyers used an FHA loan, and 16 percent of first-time buyers in the state purchased their home with an FHA loan. Additionally, more than one in five Black and Hispanic/Latino homebuyers (first-time and repeat buyers) used an FHA loan in 2022 to purchase a California home. Therefore, the reduction in the premium will result in tens of thousands of California homebuyers saving money when purchasing a home.
Leading the way… ® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 217,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)