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Welcome back everyone sixteen minutes after the top of the hour President Obama argued in his save the union that homeownership is a key.
To helping grow the -- Part of our rebuilding our effort was also involve our housing sector right now overlapping regulations keep.
Responsible young families from buying their first home.
What's holding us back.
So what is holding us back our next guest says it could be new costs and fees.
From the Federal Housing Administration the nation's largest provider of mowed down payment mortgage money.
-- we have real estate expert and Fox News legal analyst Bob -- to explain -- all -- as he joins me live this morning from Las Vegas good morning to -- Good morning Gretchen cover so let's talk about what this will do increasing monthly mortgage insurance by ten basis points.
While there is this is a real major change at Warner viewers understand there's several things I want to talk about first of all as of June of this year.
June 3 any home that's purchased after it of its FHA insured.
Now your mortgage insurance Gretchen will be the life of the loan.
Which is a major change -- it used to be.
Present when 22%.
Which get 22% equity or five years the mortgage insurance is gone that's number one number two you just mentioned.
The basis points on our existing FHA will go up as of April of this year.
About what they called -- basis points that's more cost to the home -- on existing loans and the last thing real quick.
As it relates to Jumbo loans they're gonna increase -- -- that they -- from 3.5 percent the 5%.
Down payment on Jumbo loans these are things that our president just said.
It's making it difficult for young people to get in the homes guess what it's just gonna get worse but why why are they doing that's.
Couple things if you read the statistics that they changed said the pace so many bad loans that they insured.
They've got to get to the bottom line and the only way they get to the bottom line is they increase and how they do it revenue.
And so one of the ways they do that is by paying more mortgage insurance but this one about the life of the loan Gretchen honestly.
When you sit -- and calculate that.
Probably you go buy a home and it's that they change shirt we're talking about the life alone that's a lot of money.
So what -- -- -- to the prospects of people getting back out into the real estate market because we've been hearing that housing starts her are right now.
Yet they are and I mean -- there's some good signs that I I don't wanna be half -- I really don't there -- some good signs Vegas is going a little better.
Florida we're just came back -- -- good things happening.
But I but I think we have to still be realistic and that is I tell people all the time for example.
With the FHA they actually have some very good programs.
Where you can get -- FHA conventional loans with no mortgage insurance payment yet to put more money down.
So one of the things I always say to people.
Find yourself a good mortgage broker or somebody that really understands let me -- you all the options on all the programs are out there.
I've just you know Gretchen honestly I'm not convinced yet.
That the bubble you know has is over I still feel that.
Already have some more foreclosures are gonna be some movement here and there but hey if we have good news for homeowners we want to talk about it that these changes here.
Our major changes have significant monthly payment impacts our future home owners of America to buy homes after June of this year.
All right Bob thank you very much for breaking that down for folks -- much easier to understand now thanks Bob have a great week.
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