In addition to annual mortgage insurance that FHA loans require, borrowers also must pay upfront mortgage insurance equal to 1.75% of the base loan amount.
A bipartisan bill that cleared the House last week would let first-time homebuyers pay a bit less at closing if they go through homeownership counseling. "The idea behind the legislation is that counseling should improve loan performance and make people better borrowers," said Pete Mills, senior vice president of residential policy for the Mortgage Bankers Association, which generally supports the bill.The delinquency rate on FHA loans is close to 9%, compared with about 3% for conventional loans, according to data from the Mortgage Bankers Association.
Another bailout coming.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: