South Florida homebuyers save under FHA proposal: RealtyTrac

South Florida home buyers would save several hundred dollars under the federal government’s recent move to lower insurance premiums on Federal Housing Administration-insured loans, according to data released Friday by RealtyTrac.

The U.S. Department of Housing and Urban Development said last week that it would lower FHA mortgage premiums by half a percentage point, from 1.35 percent to .85 percent. HUD said the move would affect 800,000 homebuyers, saving them an average of $900 annually. It also would spur 250,000 new homebuyers to purchase their first home over the next three years, the department said.

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According to RealtyTrac’s data, Monroe County homeowners would save the most in South Florida: $1,886 annually. Miami-Dade homeowners would save an average of $989, Broward homeowners, $844, and Palm Beach homeowners, $796.

The FHA plays an important role for first-time homebuyers since it accepts lower FICO credit scores than other lenders and issues mortgages with with low down payments.