Pursuits
Obama Cutting FHA Costs Boon to First-Time Buyers
A Coldwell Banker "Under Contract" sign stands outside a property in Washington, D.C., U.S.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
A quarter of a million Americans who have been shut out of the housing recovery may be able to get a mortgage now that President Barack Obama has cut the cost to insure their loans.
Obama’s plan, which was announced yesterday, will provide a jolt to homeownership for borrowers with lower credit scores by reducing the premiums they pay on Federal Housing Administration mortgages, said Brian Chappelle, a partner at consulting firm Potomac Partners LLC in Washington and a former FHA official. The Standard & Poor’s Supercomposite Homebuilding Index rose 4.1 percent yesterday on the expectation of more sales of starter homes.