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I Was Originating FHA..... When FHA Wasn't Cool!

By
Mortgage and Lending with NMLS# 335055 335055

Have you heard about the 'New Subprime'? Or how about the 'Mortgage Bailout'?

Well, it is FHA all the way, baby!!! Uh, er, or is it?

Do you realize that FHA has been around since the 1930s? And that it never was subprime. Nor was it meant to be the only option. Conventional Mortgages have their place. But for high LTV Mortgage Loans, FHA has been a great way for a borrower to save money off their mortgage payment.

So what is so new about it? Well, not much realy!!

FHA is all the buzz in the mortgage industry right now. And the brokers are scrambling to get signed up. These are the same brokers who never knew FHA and never considered some clients for FHA because subprime was too easy.

You see, it is still the same old FHA minus a few minor tweaks like the Home Inspection. Did you know that FHA doesn't require the Termite Inspection?

Did you know that you DO NOT have to document a 2yr continuous employment history for borrowers re-entering the workforce in the same industry and has been on the job for 6 months? Regardless of how long the job gap.

FHA is as easy as conventional loans and if you are discounting this archaic/difficult loan then you are mistaken.  Yet, I still hear from buyer's agents who tell of the listing agent refusing FHA applicants. Those listing agents have done a disservice to their clients.

FHA has never looked so sexy!! And while I never put peanuts in my Coke(play the video), "I was Originating FHA Loans when FHA wasn't cool" 


Tom Burris
DallasLoanGuy.com

Dallas, TX

"Your Dallas Mortgage Consultant"

http://www.dallasloanguy.com/
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I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!

 

While I personally focus on Texas Home Loans and First Time Home Buyers.... I do lend in other areas. We are in about 46 States and adding programs to bring full service to an area near you.

 

Linda Scanlan
A Fan of AR - Burleson, TX

Tom - FHA has allowed a lot of homeowners to buy a house when conventional turned them down. I love FHA for that reason!

May 10, 2008 01:29 AM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
HomeSmart Stars - Addison, TX
Real Service. Real Results. Real Estate

Wish you could originate an FHA loan for a buyer who wants a condo in a complex that's not FHA approved, nor can we get spot approval....

May 10, 2008 08:40 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Tom....  It kills me to hear loan officers and realtors to state that it's good to see FHA back... FHA never left, which cracks me up. And you hit the nail on the head to as why FHA wasn't used as much, because  subprime was that much easier. All you had to do was match credit score with LTV and it told you if you could do the loan for the most part. Many of these loan officers have no idea how to truly read credit, to determine what they can do... or what they need to do to make the deal work.

And Tom, on another note, I can't stand when a realtor advises their client not to accept offers from consumers that are FHA qualified...  how stupid....

In regards to Lorrie's statement...  did someone try a spot approval? There are 5 things needed to make this happen.

jeff belonger

May 10, 2008 11:28 AM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

Linda: I still hear stories of sellers not accepting FHA buyers. And the buyer's agent on one deal I was involved in didn't seem to know how to convince them that it was ok.

Lorrie: Oh no. Whay did it fail spot approval?

Jeff: I knew FHA was important. My broker didn't get it and couldn't teach me. I used an Account Executive at a conduit lender to learn it.... and am I ever glad that I had the foresight to do just that. That broker dropped FHA later hat year. I left a month later.

 

May 10, 2008 12:39 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Tom...  I was lucky that in my 2nd year I went to my 2nd company who had their own underwriter in-house... and many of the loan officers did FHA mortgages, because even back in the early 90's, not everyone had 5% to put down. And my 3rd company is where I learned most things about FHA and because I wanted to. Mostly, learning about credit and what was needed back then, especially since none of that has really changed since then....

Overall, I really don't care if other lenders don't do FHA mortgages. What's bad is that those that say they do, don't understand them and treat them like subprime loans.

jeff belonger

May 10, 2008 01:00 PM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
HomeSmart Stars - Addison, TX
Real Service. Real Results. Real Estate

The property manager says he doesn't know and can't find out how many condo owners in the complex have FHA loans so he can't/won't answer one of the questions on the form for spot approval. 

May 11, 2008 12:09 AM
Chuck Willman
Chuck Willman - Alpine, UT
NewHouseUtah.com

I agree! FHA has been around for so long but feels like the newest beauty around to so many buyers. It has keeped a good percentage of my business going in the past year.

May 11, 2008 02:33 AM
Chul KIM McGuire
CorpusTV.com - Corpus Christi, TX

Tom, OMG... FHA and Barbara Mandrell.

What combination. Of course, I would put Barbara way up there.

Cheers, KIM.  The WebTV Realtor.  Padre Island, TX

May 13, 2008 12:17 PM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience
Lorri: Email sent Chuck: Thanks for stopping by. Kim: Yes, she's hot
May 13, 2008 03:52 PM