MD Gov. Wes Moore, federal officials announce homeownership cost reduction efforts

Maryland Governor Wes Moore joined officials at Bowie State University to discuss a new Biden-Harris Administration announces effort meant to lower homeownership costs.

The White House said in a news release the administration is announcing that the U.S Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), will reduce its annual mortgage insurance premium by 0.30 percentage points, from 0.85 percent to 0.55 percent for most new borrowers

The move is expected to save homebuyers and homeowners with new FHA-insured mortgages an average of $800 per year, and make home buying more attainable and affordable for more low- and middle-income borrowers.

According to the White House, FHA-insured mortgages, which are targeted at homebuyers who otherwise may not be able to achieve homeownership, accounted for 7.5 percent of home sales in the third quarter of 2022.

The release adds that the average homebuyer in Prince George's County, where the announcement took place, will save nearly $900 per year with the reduction, based on the average home price in the county of around $300,000.