flexiblefullpage - default
Currently Reading

Biden Announces New Plan to Help Homeowners Save on Mortgage Costs

Advertisement
billboard - default
Government + Policy

Biden Announces New Plan to Help Homeowners Save on Mortgage Costs

The program, set to take effect next month, will help 850,000 Americans save an average of $800 in mortgage costs in 2023


February 23, 2023
Empty White House podium before press briefing
Image: Maksym Yemelyanov / stock.adobe.com

In a long-awaited attempt to ease housing affordability concerns for cost-burdened homeowners and buyers, the Biden administration introduced a new plan on Wednesday to help low-income and first-time homebuyers save an average of $800 per year on mortgage insurance costs, Forbes reports. Under the new initiative, the Federal Housing Administration will reduce mortgage insurance premiums by 0.3 percentage points to 0.55% for FHA-insured mortgages.

The program is set to begin on March 20, and will help an estimated 850,000 U.S. households save an average of $800 in the year ahead, the White House claims. 

FHA-insured mortgages, which accounted for 7.5% of home sales in the third quarter of 2022, are targeted toward first-time homebuyers and offer more flexible credit requirements than other types of mortgages, effectively opening the door to homeownership for individuals who may not otherwise be eligible.

According to the White House, more than 80% of FHA borrowers are first-time homeowners, and over 25% of the homebuyers are people of color; the program does not have a minimum income level to qualify, but debt levels and credit ratings are still taken into account.

Read more

Related Stories

Construction

The Right Immigration Reform Means More Affordable Homes

A national political stalemate over immigration reform has caused a dangerous ripple effect in housing's construction workforce

NAHB

NAHB's Housing Developments Podcast Explores the Future of the Federation

In a new format, NAHB's incoming CEO Jim Tobin and public affairs guru Paul Lopez discuss current policy issues and advocacy efforts that affect the housing industry

Housing Policy + Finance

Industry Leaders Urge Supreme Court to Uphold Financial Protections for Homebuying Transactions

The National Association of Realtors, alongside the Mortgage Bankers Association and the National Association of Home Builders, is advocating for continuing consumer protections, which would help ensure housing market stability

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category



Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.