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FHA Mortgages..... Are they that bad or is it a bad RUMOR????

weapons

Do you ever not have enough ammunition when heading into battle? Never!! For some of you, I been in the mortgage industry for over 14 1/2 years. To me, that’s a lot of miles per se.

I consider myself well versed when it comes to FHA mortgages and I guess you could say an expert on them. But this is not the only thing that I do. I can actually do just about every kind of mortgage that is out there. Am I an expert on every single one of them? No, there are just too many out there. To be more specific, there are over a few hundred different types of loans that one could obtain, depending on how you break them down. Some of us have our own niches. But for the most part, I can determine my clients specific needs and make sure that they are placed in the best possible mortgage program.

Disclosure : Sorry if guns offends some of you. My point is that I have a large arsenal of mortgage programs just like everyone else.

The reason for this post is education and awareness. What I want to talk about today is that when you call a mortgage company offering home loans for purchase and refinances, not only should they be interviewing you, but you should be interviewing them. FHA loans have been talked about in the negative manner in the last several years. Your fate should not be tossed aside just because a specific lender doesn't have a certain program like FHA. Why is FHA such a great program for so many?

High LTV's (loan to value) -- 97.75% -- Your mortgage amount compared to the value of the property.
Less than perfect credit -- FHA Credit -- Understanding what works
Same rates as conventional loans
Higher qualifying ratios 31%/43% -- Typical ratios for conventional are 28%/36% (yes, because of delegated underwriting, we have seen much higher ratios for both FHA and conventional)

Why have FHA loan programs not been used more than they should have in recent years? Let's take a looksy.

Not every lender can do FHA loans. Why not? It costs money to be FHA approved. And there is more to it depending if that lender is fully approved or not. Meaning do they broker the loan out to be underwritten or do they underwrite it themselves. We underwrite our own FHA loans in-house. This is important because I have full control on what we decide.
Subprime loans took over the market in the last 4 years. Why? They were sometimes easier for the lender but they cost the client more in rate and fees.
FNMA (conventional) has come out with the my community home loan. It allows for 100% financing and those that have less than perfect credit with higher qualifying ratios. Great. But your rate is usually higher and the underwriting is done online. It can only be approved through a system. An underwriter can't override the decision, unlike FHA.
Even loan officers that have FHA at their disposal are not familiar with the guidelines. Many think it's a pain in the arse, so they put you into the next best loan program.
FNMA even has the FNMA Flex program which can be a great program. But what happens if you don't fit this program?

sucker

I am not trying to sell anyone here. My goal again is to educate the consumer. Do you want a loan officer to hang up the phone on you and call you a sucker to one of their co-workers just because you didn't know any better?

If you seek out an FHA loan or ask a lender if they are approved, just don't take them for their word. Some people are just sales people and will tell you whatever you want to hear. You can check on them through a web site provided by HUD.

Here is that link : Are you an approved FHA lender?

Summary : Don't sell yourself short. Should you have trust and confidence in your loan officer because this is one of your biggest financial decisions ever? YES. But not everyone will be looking out for your best interests. Many broken promises down the road happen. Why? They just wanted to get you into the front door.

Remember, there are a lot of good loan officers and lenders out there. Just don't believe everyone when selling low interest rate mortgage rates and no closing costs. Don't be a shopper that shops themselves right out of the market.

Posted by Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans on 07/13/2007 11:48 AM

Comments (30)

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30 Comments on FHA Mortgages..... Are they that bad or is it a bad RUMOR????

JUL

2007

Jeff,

Such a good post this a 5 in my book, this really is great for consumers that just don't know enough about FHA, I have said it before many times, but this is a huge help to me as well.

Thanks and it was nice talking to you this morning,

Tom Weiss

Thanks for sharing the info Jeff.

Tom W.. ........ well, thank you very much. As I have stated, I just think we need to keep educating the client on this. ANd yes, it was nice talking to you this morning. Thanks for the heads up on that search info.

Chuck...... my pleasure and thanks for stopping by.

Jeff: I gave you a "1". FHA can be a great program, but being FHA approved is in no way indicative of the quality of a particular mortgage lender. The reason that FHA hasn't be as popular in recent years is that the mortgage insurance premium is too high. Fannie Mae answered FHA with a very competitive program that in most cases blew the doors off of FHA. Also, the advent of 80/20 programs hurt FHA too.

As far as being a broker who broker's FHA mortgages to an investor vs. working for a mortgage banking company, I have done both. With 23 years of experience and a proven production track record, I would have no problem getting a job with just about any kind of mortgage lender, yet I choose to be a broker. Why? Flexibility. Each company underwrites differently. Company A may turn a loan down, whereas company B accepts it. After having worked as a captive loan officer, I'll never give up that flexibility.

Bob Mitchell

ValueList Real Estate Services, Inc.

Jeff, I have learned so much about FHA Mortgages from you, Keep up the good work.

Bob.... thanks for stopping by, but a 1? Did you know that 1 is the worst? I have no problem with people and their opinions and I thank you for your honest opinion.

I guess I am puzzled if you understood my message within my post. You said... FHA hasn't be as popular in recent years is that the mortgage insurance premium is too high. Fannie Mae answered FHA with a very competitive program that in most cases blew the doors off of FHA. Also, the advent of 80/20 programs hurt FHA too.

Let me break this down some, with my own opinion. That is not the reason why lenders stopped using FHA because of high mortgage insurance premiums. A few things that you seem to realize. This can be financed into the loan.

2nd, if you are comparing apples to apples, what deal are you going to use that compares to FHA and a client with less than perfect credit?? The Flex 97? Sounds great, but don't forget to mention the add-ons. FHA doesn't have any add-ons. The my community program? The rate is about 1/2% higher.

3rd....80/20 loans? Not always easy to approve and you missed the whole point. CREDIT. You need a 660 or higher usually to do 80/20 loans and good credit.

As for you being a broker of 23 years. You are shopping the loan to different investors while underwriting your loan. If you have all the time in the world. If you need to close in a week and lender A turns you down, now you need to go to lender B, will you make settlement in time? Hardly not.

Again, I thank you for stopping by and for helping me to make some of my points more clearer now. Sorry, but it's very easy to spit out other programs. But let's sit down and compare the rates and what the FHA payment would be compared to the other programs mentioned, if they can get done.

Overall Bob, I can honestly say by giving numbers, if we were to compare your client getting a my community home buyers program at 100% financing and using a FHA program with DPA, that the FHA payment on a $250,000 purchase will be over $75 a month cheaper. Even with the FHA mortgage insurance premium added into the loan. Which, you will get a partial refund for if you sell the house or refinance in 5 years or less.

One thing that will differentiate myself from the average broker that thinks that they have loan programs that compare to FHA, is that I am a true stats guy. We can compare apples to apples all day. I am not trying to be negative about this. Numbers at the end is what counts, not what ifs. Just my opinion.

PS... I read your description of yourself on your profile. Interesting.....

Missy.. you snuck in there.... AGain, thank you very much.

As I have stated, I will give you any loan that you want. But I have access to ALL of them, not most of them. And I will place you in a loan that will help you, not hurt you. I make my money off of referrals. thanks again...

Jeff - Looks like Bob is a little defensive. I think he missed out on a few points in your statements. #1 - we must look for the program that best fits the customers needs.

I don't know how you can work with or for a broker without the FHA "gun" in their "arsenal". FHA is the best program for SOME borrowers.

By the way, Bob, you don't have to be a "captive" loan officer to offer FHA loans. You just have to work for a broker or be a broker who puts up enough capital (the requirements aren't that big, something like $75,000) to be FHA approved, and is willing to spend the time and money to comply with FHA rules and regs like providing audited financials.

Unfortunately, in today's market, too many inexperienced brokers have opened up shop and are weak financially, especially now.

If I were a borrower or REALTOR, I'd want to work with a broker who was strong enough financially to do FHA loans.

Well done Jeff. Originating loans for many first time buyers, FHA Loans always seem to be a good program. The guidelines are very generous and foregiving. The stigma seems to be that FHA loans are for people who can not get a "real" loan. I disagree with that statement. With there being two sides to every story in life, your post makes great points! With our clients, it always comes down to what are they approved for? Many times I have told them the program details and they are happy, it does not matter if it is a FHA, as long as it works with their financial needs.

We have arsenal of programs. But what is best for the customer? That is what is important. We take all of the variables into consideration when choosing a program. We have to pay attention to details,unfortunately sometimes left out in the initial conversation. But because we have so many programs to choose from, we are able to use guidelines to eliminate programs. Fha is a great program and it is not for everyone. But for someone that fits in the box, They can save a lot of money and not have to worry about their rate moving.

Another great post Jeff.

Brett.,..... I should have had you write this post. Between you and Open Home Mtg, you both said everything in a nutshell. Looking for the BEST program that fits for the consumer. I guess some lenders want to sell their clients short? Give them 2nd best.

As mentioned, not every loan is the same and neither is every client. And not every loan is for every client.

Open Home Mtg.... I basically stated that between you and Brett, you both covered most of what I was trying to convey. Another part of this business is that so many people seem to miss the basic point at times. Thanks for your feedback and input.

Shaun..... Yes, what is best for the customer. We have to take so many things into consideration. What's sad is that I will compare apples to apples. And the numbers don't lie. But thoughts and or opinions can be misleading as in this case with someone else's opinion.

Thanks for the kinds words.

Jeff, you did a good job explaining some of the in's and out's of FHA mortgages. One other benefit, and I know you mentioned it in another post (can you put up a link to it...?), which is the ability of a non-occupant co-signor. This is a wonderful benefit of FHA.

Leah.... thanks a lot. I think when one an criticize what FHA has to offer, you need to give actual facts and not just names of programs. If the computer decision said NO on that type of deal, even with a referral on FHA, it can be underwritten. What would the other lender then do with a NO answer? Tell the client no or give them another program with a much higher rate?

Here is that other post. Thanks for remembering this post. :FHA -- Non-Occupant Co-Borrowers, are they allowed?

Here's something only us old timers remember.......

FHA loans, along with VA loans are one of the reasons we have the great housing market we have. They helped create the market we have. If it wasn't FHA or VA, you had to put 20% down. By the time I got in the business in the late 70's, we had mortgage insurance to make Conventional loans more competitive, but the Govie loans were a huge part of the market.

Most Americans with home equity have Govie loans to thank for their enhanced net worth. Realtors and lenders would have starved to death in the 80's without them (plenty did WITH them).

In my humble opinion (some might argue that), I think FHA loans will be an essential tool for the housing market in the future. Yeah, the my community loans, etc., are really good, and FHA may never account for the market share it used to, but with the demise of sub-prime, FHA will be the best option for a significant portion of the market (where median sales prices allow you to do them).

Jeff: I'll admit, that FHA has it's place. I especially like the fact that an FHA mortgage can actually have the credit underwritten as opposed to simply looking at a credit score, which we all know is a flawed method of credit underwriting. Also, many times it is a better deal for somebody who can squeak into an FHA mortgage as opposed to going B paper.

I've taken a company through the FHA approval process before and it is a hassle. The money to do so isn't really all that much an obstacle. I've not done it with my company because it is a hassle keeping up with all the additional underwriting and compliance changes more so than anything. If I felt that it would benefit me more than the hassle, I'd do it. But I can honestly say that I haven't missed doing FHA mortgages that much.

Regarding what I said about the MIP being too expensive, it is. At least last time I looked at it. Correct me if I'm wrong, but isn't it something like 2.25% financed on top of your loan and a .05% monthly premium? I'm closing on a 100% LTV with 35% PMI coverage where the PMI premium was .79%. Nothing financed in, no additional renewal. To me, that's a better deal.

As far as the brokering vs. working for a single company. I've done both and I'll never work for a company with a single set of underwriters ever again. As far as the ability to turn a transaction around quickly, I'll give you that point. It does help to know the underwriters and the closers and to have a chain of command that can be called upon to pull some strings. That said, my record from application to closing is 23 hours! It was a perfect storm of things coming together and it didn't hurt that the lady was willing to put a hundred grand into a CD at a local bank that I was set up with, but it's a record in my book! ;-)

Brett, what you said about not working with a broker who isn't FHA approved, while you're entitled to your opinion, I don't think that at FHA approval in anyway equals a good housekeeping seal of approval. As I mentioned above, I've taken a company through the process and as you mentioned, the barriers aren't really that high. To me, it's more a question of how much hassle and expense vs. how much I would use the program if I had it. Until the meltdown of the sub prime market which took down an excellent investor that I had who had a killer A- program that compared very well with FHA, I didn't think that it would be worth it. Now, I'm reconsidering.

Lastly, Jeff, I apologize for giving you a 1. If you know how I can take that back, I would be happy to. When I first read your post, I took it as a sales pitch saying that if you ain't FHA, you ain't SXit or something to that effect. When I read your post again, it didn't come off that way as much. So, again, I apologize for that.

Bob Mitchell

ValueList Real Estate Services, Inc.

JUL

2007

Bret.... you are so correct on your statements. Something that I didn't cover. Some great information and thanks for sharing your input on this. I hope it makes some people realize this.

Bob..... you said this.... Also, many times it is a better deal for somebody who can squeak into an FHA mortgage as opposed to going B paper.

FHA can also be a better deal for someone that got an approved/eligible on an A paper conventional deal. Why do I say this? So many loan officers plug the clients information into the DU system... for those that don't know... DU stands for delegated underwriting. In any case.... I know many loan officers that try the loan with the conventional DU system first... and if they get an approval, they stop there. Even if they get an AE - I. Even though you said that they can get better rate reductions down the road, in my opinion, you are still hurting the client. Do you realize that you could have a lower payment from the get go on a FHA loan? Did you realize that an AE -I rate is 5/8% higher than the normal conventional rate. That it is 7/8% higher on a AE - II ???

On another note, you said FHA's one-time mortgage insurance premium is 2.25%. Sorry, but that is incorrect. It's 1.5% and has been that way for over 6 years that I can remember... maybe much longer.

So... based on your information, sounds like either A, you haven't done a FHA loan in a long time... possibly hurting several clients from the past or B. that your company isn't FHA approved, which some what proves my point in hand.

You also talked about closing on a 100% loan. If I use DPA, my rate would be about 1/2% better than the rate that you are giving your client. I am trying to compare apples to apples and you aren't. Compare it with 2.25% down.....let's play fair .. ???

In regards to your record? Okay? So you closed a loan in 23 hours.... that's great. You don't do that every time and everyone basically had to drop what they were doing to get that done. But what's confusing is your statement. Was title already done? Was the appraisal already done? What kind of loan was it. Just as I complain about other lenders and loan officers misleading the public, you are semi doing this. You didn't give us any information on this and one can only assume. That is half the problem with this industry as a whole.... allowing clients to assume, because they aren't given all the pieces.

In regards to the 1? You can always change your rating at any time. I do accept your apology and I appreciate that. And we can disagree. But what you aren't allowing people to see is it's full comparison. We need to show it on paper... as I did when comparing the my community rate.

thanks again

Jeff -- I gave your post a 5. I am a Govie believer. I do mostly VA Loans out here but I am trying to re-acquaint my Realtors with FHA deals. My problem is in convincing them that the FHA appraisal system has been revamped and the onerous conditions are not being imposed any more. Thanks for your defense of a great loan program. Aloha

Jeff - I gave you a five also. FHA is the best program for SOME and MANY people. It is not the best program for all people. Sometimes the GSE programs are the best fit and other times VA is. I would never want to be in a situation in which I could only put my clients in a GSE LMI or subprime product. Not having FHA and VA in your arsenal of products is not the best thing for your clients.

FYI - UFMIP is 1.5% and not 2.25%.

JUL

2007

Jeff: As I pointed out, I'm not FHA approved, not because I couldn't be, but rather because I have chosen not to be. The administrative hassles involved and the fact that conventional choices have served my purposes is the reason that until now, I've chosen not to get FHA approved.

Regarding level approvals: now, who's not comparing apples with apples? I'm primarily an "A" paper lender, but even with the borrowers who have a lower credit score, I've had pretty good luck getting folks approved on DU and while I hate to give them too much credit, Countrywide's CWBC site does a good job on some of the marginal folks as far as getting them an approved eligible.

That's not to say that you aren't right about the folks who get an Level 1, 2 or 3 approval, especially when the credit score is lower on these folks and they are not putting a whole bunch down. On these folks, the pmi on a conventional deal is atrocious! In these cases, I had been going to an investor who offered a 2 year ARM that was generally about .75% higher in rate than a conventional 30 year fixed, but who didn't charge PMI. When you compared the savings on the PMI, this was a very viable program. Unfortunately, maybe it was too good a program because that investor went belly up. That's why I am considering right now getting FHA approved. Also, there have been times where I referred a deal to a buddy of mine who owns an FHA approved shop, but those cases have been few.

Regarding the 100% loan that I am currently working, I'm not at my office right now, but I believe that their rate is going to be 6.625% or 6.75% with zero points (this isn't any kind of offer for consumer credit, so no APR). That's with me making right at 1.5% on the backside. I"m not sure how that compares to what you could get them with FHA, but considering that it's a 100% loan, I don't think that it's a bad deal. Also, if it hadn't been for a technicality (the borrower hadn't been out of consumer credit counseling long enough for the second) I could have gotten her done on an 80/20 and avoided PMI all told.

Regarding my "record" deal. Yeah, it was definately something out of the ordinary and yes, the title had already been done. I simply had to have the title company retype it in our name. I did have to get an appraisal done and yes, he did drop what he was doing to get it done for me. I also had to hand run a bunch of verifications and such. The program was some kind of bank arm (I honestly don't remember) and in order to entice the small bank that I sold the mortgage to, to do the loan the lady had to verbally promise to put $100,000 in a CD in their bank when it came up for renewal where it currently was at. If she did that or if they held her to it, I don't know?

That said, it was worth the effort. The lady was in her 80's and had her stuff on a moving truck when the previous lender had yanked the rug out from under her the day before the transaction was to close. Unfortunately, this was one of those transactions that sometimes do actually happen where the seller had a back up offer that would have gone into effect had she not been able to close on that deal.

If I get a chance tomorrow, I'll tell the whole story in a post. It was kind of wild and rewarding.

Generally speaking, I can turn a loan around in about 2 - 3 weeks if I have the stuff for alternative docs. In a pinch, I can pull some favors and get a deal done in about a week, but I don't like to go to that well very often and honestly, don't have to very often.

To wind this up. I again apologize for the "1", I have changed it to a "3" because I still feel that there was a slight against brokers in your original post and I still don't agree with you regarding FHA in the majority of cases. I'm still chewing on if I want to take on the hassle of offering FHA in order for me to be able to do the few where it would be better for the borrower to go FHA. As of right now, about 75% of my business is repeat or referral (and I do a terrible job at staying in touch with my previous clients too! - something that I'm working on fixing). I mention this because, for the most part, my clients love us and are very happy with the jobs that we do for them. If there have been a few occasions, where my borrower might have been better off going FHA and that I put them on another program, the differences were marginal and my client's don't seem to have minded at all. Over-all, they feel that I offer the best value.

Sorry about the length of my comment, I wanted to attempt to answer your questions.

Bob Mitchell

ValueList Real Estate Services, Inc.

Bruce..... that is a big issue that some realtors, clients, and even lenders still think about, the appraisal. Many still don't know the changes that happened. How long ago was that? 5 years ago? 7? I can't keep track anymore.

Tony..... yes, I had corrected the UFMIP already. (Up Front Mortgage Insurance Premium).... And as most of us know and have stated, that every client is different and they all don't fit the same programs.

Bob.... I am not going to touch on everything. In all honesty, I think you keep missing the point. I say this because you keep bring up 80/20's. FHA is typically there for less than perfect credit and much qualifying rations. The biggest part, less than perfect credit -- lower credit scores. Curious, why do you keep throwing in 80/20's? They don't compare. You can't get a FNMA 80/20 approved with a 580 credit score.

On your 100% program... please, look at that rate again. You aren't doing a 100% loan with a 6.625% or 6.75% rate with zero points. You just aren't unless you are lending your own money...personally your own. I know the lending all too well and every investor out there. FNMA has a hit for 100% financing. Your rate will end up about 1/2% higher than a normal conventional or FHA loan. This is a real fact and not something made up.

The client that you put into a 2 year arm? How can you compare this at all? And the rate was still higher than what FHA would have been. You know what, by not having FHA, you did hurt your client on this one. They stay in that house for 4 years, hands down, my FHA loan would have been extremely better for them.

Look, I love a good debate. But we are going in circles. I never said FHA was the end to all. But if you don't have FHA, you do potentially hurt your clients. Not all, but some.

Lastly, you even admitted yourself why you don't have FHA right now. That was part of my reasoning. Now, you are making part of my point. I do appreciate your input, your feedback, and this conversation. I hope consumers read this whole thing...even the comments.

In my opinion (note: MY opinion) ANYONE who bad mouths FHA mortgages is simply telling the world loudly and soundly that they DO NOT understand the program. With the many options offered by FHA, especially from the credit angle, FHA is a GREAT option for your client.

I have been doing FHA mortgages for over ten years and will ALWAYS include them in my arsenal. The flexibility gained greatly over shadows any perceived short comings of the program. Quite frankly, I don't see anything in the program that I would classify as a short coming.

I love the program and have gained may loans simply because I offered the program and others didn't.

i dont think ther are bad

every program has its use

so even though you may make less on an FHA lets say, you still may want to use it if you have in house UW who can get this cleared up asap and close it

in todays market that is huge

client rem that and you will get future business

thats the way i look at it.....in the long run

JUL

2007

Interesting debate:) I completely agree with Jeff on this one.FHA is an excellent program and most of my borrowers love it and love me! Thanks FHA. FHA can be a great program for people with good credit too. MCM is purchase and rate and term only. FHMA can't go higher than 90% on cashout. Yes, you can take them ALT-A. But MI will be higher and rate. FHA- 95% cashout! Not many programs can beat that. Monthly MI is the same whether it's 85LTV or 95. One of my recent FHAs.. 575 credit score, 95 cashout, monthly savings >1000/mo, 6.5%. What's not to love?

Thanks Jeff for very informative articles!

Cheers

Nice! Like Jeff I have lot's of years in this business,, and I basically cut my teeth on FHA loans! Personally, I love them! Fha loans are very forgiving on credit issues and if the borrower has any kind of compensating factors, like reserves.... I have rcvd approved decisions with ratios over 50%!!! True!!!

And all this on conforming pricing with a really, really nice SRP to boot!!! I'd do FHA loans all day long..The only drawback I see to an FHA loan is their lending limits. In my area, Miami/Broward, it was a real problem and FHA became sort of like the relative noone wants to talk about,,,,,, but I got a feeling it's back and in a big way!!!!! I for one am a fan!

thanks Jeff...

Just closed today on an 80/20 at 6.75 (making 1.5) on a 30 year fixed rate with no pmi. Middle credit score was 677 and the lady walked out of closing being reimbursed $5XX.00. I'm not saying that FHA is bad, just that I've not really missed it.

Bob Mitchell

ValueList Real Estate Services, inc.

Sorry everyone, but I have to address Bob Mitchell first....

Bob M. ....... I don't want this comment to sound rude. I am not your true politician. But I don't think you understand my whole post nor my comments. Again, you are not comparing apples to apples. If you had a 577 credit score, you aren't getting that type of loan, period.

I never said that FHA was the end to all or that you should go to FHA first, on all deals.

You haven't missed it, FHA?

A. you either get all good deals or

B. you are losing income per month, because there might be some loans that you could lose. If you can't get a 97% flex or 100% loan approved, then your next step would be a 95% or lower LTV loan. And if the client doesn't have that kind of money, then you might be losing a deal or a client. That has been my main point for the more part.

One great point overlooked....The borrower can refinance his/her FHA Mortgage to a lower rate without qualifying. Besides VA I do not think there is another program that is out there that offers a true Streamline Refinance....It is a good selling point

To everyone else....

Steven S. .... I totally agree with everything that you have said. And I am not trying to be the bad guy here and be mean to Bob Mitchell. But I truly think he is missing the point and keeps giving me A++ scenarios.

I never said that a 675 credit score should go FHA. It also comes down to that clients goals. Thanks for your feedback.

Dominick...... yes, every program has their use. But, I am confused about your statement in regards to that you make less on FHA. How is that? My pricing is the same as FHA and it is almost priced the same. It just depends on what kind of deal that you are willing to give your client.

In any case, thanks for the comments and for stopping by.

Olga.... that is another great example. I have a client with 646 credit scores..... he needs more cash-out than the typical conventional 90% cash-out. As you stated, I am going to 95%. The only possible way to go to 95% or 100% is to do a 80/20 or a subprime loan. But FNMA has max CLTV's and the subprime rate will be much more than the FHA rate.

Great point to bring up. Thanks for your input.

Arlyn... in regards to the maximum loan amounts. This will change by September. Congress will approve the new limits and the President will sign off on the new bill. This is some inside information.

And yes, as many of us have stated, FHA is a great loan on less than perfect credit. Bob, we aren't talking about A++ credit or credit scores... again, apples to apples. thanks Arlyn...

John.... you can do streamlines with conventional also..... but FHA makes it very easy. You can even be late on your mortgage, as long as it's current. But great point and I don't know the whole particulars on the FNMA streamlines. Does anyone have a great handle on this?

I find it amazing that this subject continues to surface. If you are a lender that gets good pricing, run the numbers . An FHa loan will beat a conventional everytime. Lower mi and usually a lower rate.

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