Lower costs are coming for homebuyers seeking a Federal Housing Administration-insured (FHA) mortgage. FHA announced that it's cutting annual premiums for mortgage insurance from 0.85 percent to 0.60 percent, a move the National Association of Realtors® (NAR) says breathes new life into the program. With FHA loans, buyers pay mortgage insurance to protect FHA's funding in exchange for downpayments as low as 3 percent. "FHA mortgage products exist to serve an important mission: providing homeownership opportunities to creditworthy borrowers who are overlooked by conventional lenders," says NAR President William E. Brown. "The high cost of mortgage insurance has unfortunately put those opportunities out of reach for many young, first-time- and lower-income borrowers. Now, we have a real opportunity to get back on track." Following the Great Recession, FHA increased its monthly mortgage insurance premium from 55 basis points to 90 basis points; then, in April 2013, it increased them again due to post-recession concerns over credit risk and the need to strengthen FHA's Mutual Mortgage Insurance Fund (MMIF). At the time, however, NAR research found that the overall 80 basis point increase nixed 1.45 million to 1.65 million renters out of the market. Since then, the MMIF has shown continued good health, including...