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.
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.