Sometime in 2013 there will be a number of changes, but one will have a major effect. FHA plans to do away with the cancellation of the monthly mortgage insurance. That is not good news.
The present rule is that borrowers have to pay the monthly mortgage insurance for a minimum of 60 months and once you have a 22% equity position in your home, the monthly mortgage insurance goes away. That will no longer be the case.
So what advice can you give clients that will need to purchase using FHA as the mortgage type? If you know someone who is thinking of buying a home in the future, BUY NOW. There will be no better time.
Check out this article for the details on the changes coming: