Impending FHA Changes Underscore Need for Realtors to Stay Apprised of Mortgage Options

On October 4, the Federal Housing Administration (FHA) will implement changes to the premium structures for an FHA-backed mortgage, making it more costly for home buyers to procure FHA loan products. This imminent change in FHA lending, along with the gradual stabilization of the marketplace, are paving the way for conventional financing with private mortgage insurance (MI) to make a comeback in lending for low down payment buyers. Real estate professionals need to stay current on these changes in order to properly advise clients on the best mortgage option for their particular situations.

“Real estate agents need to take the extra step to educate themselves on these changes and not just rely on their lender,” says Chuck Iverson, vice president of production for Sierra Pacific Mortgage. “They need to know what the options are. Knowledge is key to not only serving the customer but closing the deal.”

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