One of the commentaries that I follow is Think Big, Work Small. This commentary is a video blog by a couple of “over the top” real estate and mortgage video bloggers. They have some really great insight on what is happening that will effect us in the Eugene/Springfield Real Estate Mortgage Market.

Their episode today has some very interesting information about House Bill 5072 sponsored by Maxine Waters that will increase FHA yearly mortgage insurance premium from the current .55 factor to a 1.55 factor. According to Brian & Frank’s analysis, this increase will be the same as taking the interest rate from 5% to over 7%. You can watch what they have to say here.

I believe that in a down to stagnant real estate market that is just starting to show recovery, changing the yearly mortgage insurance premium this dramatically will have a huge effect on purchases. FHA loans went from a very small percentage of the market a few years ago to well over 30 per cent of the market over the past year plus and has been an integral part of helping lower income clients continue to buy homes. This will lock the people that Congresswoman Waters purports to champion nearly out of the purchase market.

I don’t normally call for people to write or call their Congress critters, but I think this one is well worth the effort. The House Financial Services Committee has passed this bill and sent it to the House floor for debate. This is a killer bill for the FHA mortgage market. Listen to Brian & Frank and then do your research and make up your own mind, but I hope it will be to be active on this issue. This is also coming on the heals of FHA raising the up front mortgage insurance premium (UFMIP) from 1.75% to 2.25%. Here is a link to contact your Congressperson.

Contact me

You need to decide if it makes a difference to you. I am available right now to help you with the FHA loan process. If you want to buy a home using an FHA loan, I am here to help. Contact me at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 cell or by e-mail. Only you can make the choice it is time to get the process started.

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