The federal government had decided early this year to help lower income home buyers afford to get in the market by reducing their PMI (Private Mortgage Insurance) on FHA (Federal Housing Administration) loans. This is a type of insurance that is currently required for borrowers who have less than 20% equity in their homes. This mortgage insurance wasn’t necessarily required prior to the recession, and Realtors applauded the effort to reduce the cost burden to (usually) first-time home-buyers since the real estate market is in vastly better shape than it was prior to the downturn.
However, effective January 20th, 2017, the US Department of Housing and Urban Development suspended the program. We’re hoping it will be picked up as a priority again soon!