I think this effectively raises the interest rate on all FHA loans by 1.5%. How is raising the minimum down payment not better? Raising the minimum down payment would save more money in the long run (if that is the goal, but I’m not sure what the real goal is here).
I wonder if the 3.5% down buyers will be quicker to walk on an underwater house when they see that extra 4k per year extra down the drain for the foreseeable future.
I think if enacted this changes the rent/buy numbers significantly for the marginal crowd (if anyone does numbers).
