FHA and VA are both lowering their cost of lending

A little bit of good news: Both the FHA and VA are lowering their cost of lending in the next month. For FHA loans closed after March 20th 2023, the monthly mortgage insurance premium is going down from .85% to .55%.  For a $500,000 purchase, this could save a buyer $100 each month.  
For closings after April 7, the funding fee on VA loans is being reduced by .15%. For a $500,000 sales price, this should save VA borrowers $750 on closing costs. With many buyers feeling the sting of higher interest rates, these changes will give them more options.   

Fannie Mae is tightening requirements for buyers with a low down payment and higher debt to income ratios, and this will likely result in an increase FHA loans in the near future.