-
Quick Tour
Connect. Share. Learn.Welcome to ActiveRain, the #1 social community for real estate professionals.- Explore the world's largest storehouse of real estate knowledge
- Access free training on ActiveRain University
- Share the experience of life in the real estate industry
- Grow your business through real estate blogging
- Blogs
-
Resources
Product Reviews Curious as to what others in your profession think about a certain product or tool? AR's community takes the time to leave honest and transparent reviews of their experiences so you can be a bit wiser about your purchase.
- Broken down by categories and subcategories for easy finds
- Get an unfiltered look at what real users are saying
- Leave a review yourself for others to benefit from
- Add new products as you use them and gain points for doing so
|
... But isn't FHA for poor people? We don't want our offer to appear like we're desperate.
;)
;)
;)
Find IL real estate agents and Evanston real estate on ActiveRain.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2013 ActiveRain Corp. All Rights Reserved
24 Comments on But isn't FHA for poor people?
Great info Alan... I reblogged this to share with more people.. thanks!
Alan - I even had a client who bought a foreclosure with an FHA loan. The REO listing agent made the necessary repairs. I was surprised, but some have a budget for repairs now because FHA loans have become a primary source of mortgage money. FHA loans also allow for a co-signer who doesn't live in the home, unlike conventional mortgages, so it's really good for first time homebuyers who may need their parent's co-signature.
Alan, I've heard that comment so many times over the years. Your post shows that FHA has some "myths" about it, but it's an excellent way to buy a home. Great job.
You hit the nail on the head -- people are afraid FHA loans make them look bad. Thanks for dispelling the myth!
Add in the fact that they are assumable (huge selling feature given where interest rates are now) and you can do streamline refinances that don't require appraisals and buyers have all the more reason to investigate them.
Aren't most people poor these days anyway Alan?
Alan,
FHA loans have been King of the Castle for several years around here. Conventionals are starting to make a comeback.
Rich
Kathy - thank you.
Edward - I agree.
Harry - I've never used one personally... but have many clients who have.
Janis - terrific, thanks for the reblog.
Gail - that's good to know.
Juli - I hear that often... whenever I suggest FHA as a possiblity for putting less money down.
Wayne and Jean - yes, they think they give the appearance of poverty.
Chris Ann - they may be assumable, but I'm not sure that's a great option for the seller.
Malcolm - come on in, the water's fine!
Richard - we've seen a fair amount of them 'round here, too.
Very timely Post Alan ..I have heard people say No FHA we want to keep out the undesirables ..What nonsense .. Look at all the great people they are excluding from buying their Home or Condo
Alan, for clients who seesaw on FHA loans, it's great to have an agent who doesn't teeter!
Brian
There are misconceptions out there about FHA loans; This blog clarifies them!
Alan -- for some folks the FHA loan is the best product. However, with their rising Mortgage Insurance (MI)premiums, it is sometimes better to go with a 5% down Conventional mortgage, so that the total payment is less (as the Private Mortgage Insurance is not as high as the FHA MI) - and they can then meet the DTI requirements.
Hannah - yep, FHA still has that negative connotation associated with it.
Brian - teeter... heavens no!
Kat - I don't know how clarifying it was... but I hope it helped.
Steven - you're right... sometimes a conventional loan can be the cheaper product, depending on the length of time you keep it.
Nice, simplied explanation FHA Alan. I haven't heard the rumors of it being for poor people. Besides, who asks what kind of a loan are you getting when you buy your home? That's just nosey!
A loan is a loan, no matter where it comes from. If I had an FHA buyer, I won't discount them at all.
Kristin - and yet, that's the perception out there.
Bryan - a loan, is a loan, of course, of course...
Alan,
In my local market, FHA represents over 1/3 of the financing (in units) and VA about 3%. There is a definite market for their products.
Brad - I think that's probably similar to this area.
Alan - In the past few years, the bank are not lending and FHA has been only option to buy house for many home buyers.
John - that hasn't been my experience. I find the banks are happy and willing to lend... they have more money to lend, than borrowers... because they're become more strict with their rules and guidelines. Go figure... you actually have to qualify for the loan now, instead of merely fogging a mirror.