It will not go on for the life of the loan, as was previously the case. These further changes came about, I would think, in response to the legislative actions that have been taken place for conventional loans this past year, which we have previously discussed. Mortgage insurance is an insurance that protects the lenders in case of default and thereby encourages them to make loans available on a wider-ranging basis, either as to down payments or qualifying criteria. The FHA loans are offered with very low down payments and much more liberal qualifying guidelines to assist people in reaching that American dream of homeownership. We are grateful for these changes that will assist homebuyers.
Every little bit helps.
Home ownership is a wonderful objective for your energies. It can provide not only a great tax benefit, but also a good feeling of community and security. Good luck to you. From application to funding, everything is handled locally. 2001 by The Mortgage House, all rights reserved.