WASHINGTON, D.C. – U.S. Senator Robert Menendez today applauded the move by the Obama Administration to significantly lower fees the Federal Housing Administration (FHA) charges borrowers, saving current homeowners hundreds of dollars a year and expanding the opportunity for thousands of families to realize the dream of homeownership. Menendez had called for this action in an effort to spur first-time homebuying and jumpstart New Jersey’s housing market.

“For too many hard working New Jerseyans, the dream of homeownership is just that – a dream. That’s why I’ve been pushing for smart actions like the one taken today which will help make that dream a reality for thousands of New Jersey families,” said Sen. Menendez. “And not only will we be putting real money back in the pockets of current homeowners, we will be jump-starting our housing market and our economy.”

On December 18, 2014, Menendez and several other democrats wrote Secretary of Housing and Urban Development Julián Castro to push for the FHA to evaluate lowering its mortgage insurance premiums so that more creditworthy families can access affordable financing needed to buy their first homes.

Since 2010, the “annual premiums” on FHA loans have increased five times from .55 percent of a loan’s value to 1.35 percent. Dropping FHA loan premiums to .85 percent is estimated to help 250,000 families purchase a home with the help of an FHA loan in the next three years, and new borrowers will save an average of $900 annually.

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