HUD Foreclosed - Foreclosure Network

Information

FHA

This group is to educate everyone about FHA guidelines and new programs offered from FHA.

Location: USA
Members: 8
Latest Activity: Oct 6

Discussion Forum

Sean Rossi Brown

The New Subprime 2 Replies

Started by Sean Rossi Brown. Last reply by barbara woods Sep 12.

Comment Wall (2 comments)

Add a Comment

You need to be a member of FHA to add comments!

2 Comments

Louis Jeffries Comment by Louis Jeffries on October 6, 2008 at 10:12am
FHA INTODAYS MARKET

Today there is a lot of flexibility gone from mortgage financing. Gone are the stated income and no documentation loans, gone are the low credit score loans, gone are the flexible underwriting that will allow you to do almost anything with a good down payment.

This means there is no more "Subprime" or "Alt-"A" programs. the few that you might find are so restrictive that they serve no purpose. There has even been major changes in the "Prime" programs. Traditional Conventional lending has become more and more restrictive and costly. With the new "risk based pricing" if you do not have at least a 740 credit score you may be subject to a rate increase depending on your down payment and product. If your score is below 680 you really are priced out of the market.

Though FHa has made some recent changes unless you have a large down payment (25-30%) FHA most likely is the better program for you.

Simply put, rates and pricing adjustments are much better. Case in point.
Today an FHA 30 year fixed with 5% down and no points or origination fee with a credit score of 640 will have a rate of 6.5% while for a conventional loan the rate is 6.75% even though the start rate would be 6.125%.

Another factor to consider is mortgage insurance. For FHA it is .5% and for conventional it is .94% almost double.

Which loan would you prefer.

If you have questions please email me at louisjeffries@hotmail.com
Stirling Real Estate Corporation Comment by Stirling Real Estate Corporation on August 24, 2008 at 1:40pm
FHA Loans are not credit score driven. Today you can find great real estate deals through developers and with an FHA loan purchase property at exceptional prices. Some developers will even pay closing fees.
Stirling
 

Members (8)

diana badroen barbara woods Sean Rossi Brown Rashida Bell Louis Jeffries Stirling Real Estate Corporation Sandy Hook Overseas Property Maritza Ruiz
 
 

PREMIUM Membership

Take advantage of special PREMIUM member benefits:
Already Have PREMIUM? Log in to PREMIUM Here!

Share This Page


 

© 2008   Created by HF Admin

Badges  |  Report a Problem  |  Visit Our Profile  |  Terms of Service