In an effort to make owning a home more affordable, the Federal Housing Administration has dramatically cut the costs associated with the mortgages it backs.

As of January 2015, premiums for FHA mortgage insurance were cut from 1.35% of a loan's value to about 0.85%. Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements include mortgage insurance primarily for borrowers making a down payment of less than 20%.

FHA loans have been an important lifeline for low-income and higher risk borrowers in the wake of the financial crisis.

“Because of today’s tight lending market, many creditworthy families aren’t given the opportunity to purchase a home,” said Dean Thiery, mortgage banker in Bismarck.

“With the lower FHA premium, it gives people in our community an opportunity to buy the home they’ve been dreaming of.”

The White House estimates the lower premiums will enable up to 250,000 new buyers to purchase a home.

Learn more by talking with a mortgage banker today or use our financial calculators to help with your home buying decisions and budgeting.

Ready to apply? Complete this mortgage loan application to start the loan process for a home purchase or refinance.

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