by Rommel Conclara, ABS-CBN News
DALY CITY, CA — It was barely a few hours after his inauguration, that President Donald Trump reversed a cut in the Federal Housing Administration’s annual insurance premium.
It was one of the last measures put into place by the Obama administration, and was to provide a rate reduction that would have amounted to a reported $500,000 dollars a year in savings, for an average $200,000 loan.
The rate reduction was cut before it went into effect.
Faith Bautista, a registered Republican and President and CEO of the National Asian American Coalition (NAAC), says that the president’s executive order is not as bad as everyone thinks.
“Yes and no. It really depends on an individual’s situation,” Bautista says. “For the mortgage insurance — it will remain the same if you do not put 20% down, so there’s always that risk or that rate.”
Paula Canfil is looking into buying her first home, and like many other kababayans, has run into some difficulty especially in the San Francisco Bay Area.
“The market is very high, and the investor they can beat you to buying a home, and there’s very limited houses,” she says. “If there is one, you don’t know about it. And you have to bid a lot to buy a home, and you overpay.”
Canfil, who also works at the NAAC as a housing counselor, hopes that the government can provide more assistance other than the proposed mortgage loan cut.
“They can start helping in providing down payment assistance, helping tenant to home ownership,” she agreed. “Why can’t we give incentives more to the banks to give access to loans? People like our kababayans; they can afford monthly payments. Our parents, aunties, children, we can help them buy a home if they have the down payment.”
Bautista adds that there is a lot of help out there for homebuyers and urges everyone to continue doing their research.