FHA

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

Location: USA
Members: 8
Latest Activity: Oct 6

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

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2 Comments

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

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