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FHA loans vs Conventional loans - A real comparision with 5% down

By Jeff Belonger

Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

November 15, 2008 12:11 PM

fha loans & fha mortgages

FHA loans have been more wisely used in recent months as the choice of mortgages. What I hate hearing is that they have taken the spot of the subprime loans. This is not true by any part of the imagination. This statement is from those that are inexperienced in both the mortgage and the real estate industries. The realization has been that 30% of the subprime mortgages in the last 5 years previous to the last 2 years should have been FHA mortgages, not subprime.

The subprime loan for many years could go down to a 500 credit score, depending on your equity position. But your rate was usually higher. If your score was higher, the less you needed to put down, the lower your rate. Sounds good, right? Wrong, because the subprime rate was always higher than the FHA rates.

To compound this, so many said just because you had a conventional loan, you had the better loan. This was not always true when putting 3 percent down. In most cases, you were told this, because that particular lender was not FHA approved. Now? Even with 10% down and credit scores less than 680, FHA loans in many cases, will be the best mortgage for you.

So you could argue the fact that this is just my opinion, that FHA mortgages in many cases would be better for you. True, even though I have over 16 years of experience as a loan officer in the mortgage industry. But numbers don't lie. Let me show you.....

The example below is based on a $300,000 purchase price with 5% down. One reason why conventional rates are a little higher in this scenario as in FHA rates is because Fannie Mae and Freddie Mac have added penalties per se. If you are putting down less than 30% and your credit score is less than 720, certain fee penalties would apply to you, which would increase your rate. The FICO (credit score) that I am going to use is 659, which is above the average credit score and I will still show in this example that FHA loans are cheaper, even with 5% down.

***And keep in mind, some lenders have penalties on FHA mortgages with credit scores under 620. And many lenders can't do FHA loans under 580. I can still do credit scores down to 500 with a manual underwrite.***

fha loans vs conventional loans

Disclaimer : These rates are examples, but the spread shown in the example is real. To compare this scenario apples to apples, the fees are the same and with zero points. In this scenario, there are no lender fees or points. The conventional rate also includes the penalty for the 659 credit score.

Some of you might be saying that you will be adding $4,897.00 onto your principal balance if you did the FHA mortgage because of the FHA one-time mortgage insurance premium. This is correct and I don't want to confuse you with more numbers and charts. But here is a quick breakdown. If you kept your house for 5 years, which most people sell in a 6 year period, you would have saved $12,770.40 in payments in 5 years. This is a difference of $7,773.40 that you have saved!!! And one other thing that is very small, but still makes a difference. You will be subtracting a few more dollars per month from your principal because your interest rate is lower, which would offset the interest that you would write off on the 7.000% rate. Just something else to remember, but consult your tax consultant or CPA.

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Christine Donovan

Donovan Blatt Realty - Costa Mesa, CA

Broker/Attorney 714-319-9751 DRE01267479 - Costa M

This is a good illustration to help people understand. Here in Orange County, CA FHA loans had not been very useful due to home prices until the recent changes.

Nov 21, 2008 01:47 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

DEE.... . I write one of these every 3 months or so.... and yes, I am getting sick of loan officers or lenders advertising that FHA is the new wave of subprime mortgages. Sorry, but they should be shot, because they were probably the same ones that put people into subprime loans instead of FHA loans. Sad yet so true..

CATHERINE..... . FHA usually doesn't control the credit scores... it's Wall Street and the investors. FHA will allow you to do loans under a 500 credit score, but you have to be at a 90% ltv or better. But can you still do a 499 credit score at 90%? I know I can't.... I can broker that deal out to someone, but the pricing is like a subprime loan. Just food for thought.

JAY..... . I already commented on your comment. Here is my comment... My Comment to Jay. And I see that you left another comment, which I reply to it when I get to it. I needed to gather some more energy to reply, considering you called me 'not a professional' and a few other things... yet you were then able to tell me that I haven't learned anything in 16 yrs or that I am professional. Isn't that calling the ketle black? In any case, wait for a good reply to your so-called comments. Yes, I am dropping the gloves.. lol

SARA...... . thank you very much. I am glad that it breaks it down and it's easy to follow. And I semi apologize for a few commenting that have no clue how to price out a loan. thanks

LAURIE..... . I would be glad to show you a comparison. The same ones that argue with me in regards to this scenario are probably chomping at the bit. I will do a comparison later today and let you know about it. AT 5% down, there will still be a difference and FHA in my opinion, will still save you money monthly, but it won't be that great of a savings. Just mortgage insurance alone, as you can see, it about $56 a month savings... I would bet it would be about another $20 without doing the numbers.. which would make your savings $76 a month... thanks

JAY.... . thanks.. you can jump in there though and show me what you come up with. You already disagree with me on my chart and the rates that I am using, which I will talk about when I reply to your next comment. thanks

BLAKE..... . well, 2 things... FHA loans should have never fallen off. I still stick by this statement that I make often. Between 2001 to 2005, about 30% of all subprime loans should and could have gone FHA.. getting to your 40%... I have heard anywhere from 30% to 45%. I know my office alone is at about 90% of all business that is FHA. thanks and thanks for the polite compliment.

Nov 21, 2008 07:01 AM

Jay Scharff

Turner Real Estate - Auburndale, FL

My previous point/comment has been validated. You are doing well Jeff and I hope that continues to work for you.

I resign to your experience, superior knowledge, and overall mastery of the art of "people skills".

God Bless.

Nov 21, 2008 07:46 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

I want to apologize to everyone still reading these comments and to the general consumer. For those of you that have ever tried applying for a mortgage and the loan officer said that you were qualified or approved, yet at the very last minute two things happened...

The loan officer or lender cam back and said sorry, we can't help you now. (even though they promised you a loan 30 days ago) One reason would be because they screwed up or didn't know what they were doing. OR
They baited and switched you and now your rate is higher and or more lender fees or points.

I bring all of this up because of some of the attacks from those that really don't know what they are doing. They either have no clue or have nothing better to do. As you can see, some can't specifically answer some questions with proof. Or answer the question 100% and not skate around the question with half answers such as, every lender is different. Pricing can be different. Really? no kidding. But not a whole 1% off and they keep leaving something out.

JAY....... Validated? 2 wrongs don't always make a right. There is no reason to mock me, when you have talked to someone else who seems to agree with you. Just because they agreed with you doesn't mean that they are right. Besides, you made like 3 different statements, yet you tell me that your statement has been validated? Which one? Are you saying that everything that I stated is wrong and everything that you stated is correct? I will ask you 2 specific questions below so as not to confuse the issue.

Let me cut to the chase Jay. Because you replied back in code, yet never specifically answered one of my questions. Here is one of the statements that you made. "Jeff I fully understood the reason for your 659 "penalty" quote. As you mentioned later in your response states differ. Mortgage Banks differ. Fannie and Freddie seller servicers differ as well. Some seller servicers get better deals than others. Not a point to argue."

Let's start over on this and stop using the different states and different servicing. All of that is small patoes because you are only talking about an 1/8th of a point there or a 1/4 of point here. That still doesn't make my spread of 1% between FHA and conventional loans that you attacked, that it will change it by much.

A.. So... let me ask you this question.... do you have a penalty on a conventional loan with a 659 credit score with 5% down???? Is there a pricing hit? And if so, how much. Give me your lowest penalty and don't use excuses that each lender is different.

B.. Secondly..... you made this statement.. "I apologize for my typo, you are right UFMIP is at 1.75% but is going to 2% and the monthly MI factor is currently frozen at .55% regardless of credit score. That is the suspension that is being lifted."

You are telling me that they are lifting the suspension? It is 1.75% for UFMIP and is staying at 1.75%. You said it's going to 2%...??? WHo said this? Your broker? A loan officer that you know that validated your previous statements? Can you give me the mortgagee letter that proves this? You might want to fully read mortgage letter 2008-22. It states that as of October 1, 2008, the UFMIP on purchase monies will be 1.75%. It says that all streamline types will be 1.5% and that all FHA secure loans will be 3.00%. You might want to read this : Changes on UFMIP

Now... why did I come out and sound semi mean and or rude in my comments to you. Because you have claimed to be right now 3 times. Yet, you haven't answered my comments in detail. And now you tell me that you have been validated. I have no problem that people make mistakes, or that they don't know everything. Hey, I am not perfect and will admit when I am wrong. But you have tried to discredit me. If you could just answer both of the issues that I just mentioned, we'll see what the real deal is then.

jeff belonger

Nov 21, 2008 08:29 AM

Tom Burris

NMLS# 335055 - Baton Rouge, LA

Texas/Louisiana Mortgage Pro - 13 YRS Experience

My comment is to Jay

I find it quite interesting that you would come into Jeff's blog and say he is wrong.... then dance circles around his questions.

Jeff is a knowledgable loan officer and from what I read, is accurate here. Being great at what you do tends to invoke jealousy in some it seems.

Jay, after visiting your profile, I see that you are a loan officer AND a realtor..... Which one are you good at doing? <= *blog ideas popping into my head*

Jay: Can you point me to the Mortgagee Letter that says FHA is going to 2% UFMIP?

Nov 22, 2008 06:14 AM

Gerry Suarez Jr.

New American Funding NMLS 6606 - Orlando, FL

FL Mortgage Guru

Wow, this has become a steel cage match... (cue in Sardi).

But seriously the issue is important to many a consumer and when the answer is this clear it shouldn't be this difficult to comprehend. Jay, I think I maybe see your original point but in your effort to defend it you betray your lack of knowledge (sorry dude, that's not an attack, it's a statement of fact. You attribute the 5.5 UFMIP to a typo, well that's one HELL of a typo especially considering the real number is 1.75. You then state UFMIP is changing to 2% and that is just wrong.) I believe your biggest gripe was with the way Jeff chose to do the rate comparison. How can we know a 6% FHA rate was equal to a 7% conventional rate that day?

When you consider the scenario Jeff paints requires an additional 1.5% in points on the conventional loan the 7% rate is not a stretch. That 1.5% by the way is NOT negotiable, it's a delivery fee meaning FNMA or FHLMC require it to accept the loan. Since most people with only 5% down don't have 1.5% laying around to pay points, it is accurate to assume you will need to build it into the rate. A great website to see exactly what FNMA is requiring each day for their loans is here. The 1.5% delivery fee MUST be added to those yields in order for the loan to be bought.

Let's back away for a second though. Beth (I'm jumping in too so if I start to drown please pull me out!) so accurately mentions the conventional loan delivery fee (1.5%) is very close to the FHA UFMIP fee (1.75%). Keeping these fees excluded and penalizing FHA for the extra .25% in their fee ($750) what comparisons can we make?

Well monthly private mortgage insurance on the conventional loan is calculated at .94% of the loan amount, while FHA is a flat .55%. That leaves us with mortgage insurance payments of $223.25/mo for conventional and $130.63/mo for FHA. In a dollar for dollar comparison you save $92.62/mo going FHA but you would have to keep the loan for at least 9 months until you make up the extra $750 you paid for the FHA UFMIP. Since in this market you can safely assume any owner occupant is planning on keeping their home more than 9 months it's really a no-brainer.

Just to further clarify- someone mentioned something about FHA monthly PMI not going away? That is completely false as of about '01 or '02 as I recall (maybe longer... I'm getting old). FHA monthly PMI is required for 5 years but then drops with the same basic criteria as conventional mortgage insurance. Considering the blistering rate of appreciation we are seeing these days (swim in THAT sarcasm) I'd bet money you will be waiting 5 years to get to 80% in most markets.

Bottom line is you can create a scenario where conventional beats FHA but it won't represent the average transaction. If your credit score is 720 or greater AND you are buying in a non declining market then you might be better off with a conventional loan. Either way the numbers should be crunched for every deal and all factors should be considered by the customer so they can make the best decision.

The vast majority of the time FHA will be the way to go. Hell in Florida it's the only way to go since 5% conventional is pretty much history (not comparing the other govie standbys VA and USDA). Jay you do need to brush up on your FHA knowledge and you've gotten a lot of well deserved grief about the "dual role" model as a result. Personally knowing how little I know, and considering I am a full-time, life devoted to this business type lender I can't imagine how you feel you can do a good job at both at the same time. Feel free to ask Ray Levy about how I have had to come in a save deals from Realtor/Lenders that couldn't get them closed.

Remember, multitasking is the art of messing as many things up at once as possible. In this day and age of insane little details costing someone a loan, you best be able to play your "A" game all the time. That said GO GATORS (sound of GATORs chomping down on all of you everywhere!)!!!!!!!!!!

Jeff, sorry about the length of this but please continue doing what you do so well. We need to inform the customer as much as possible and you do so much towards that end. Also, huge props on keeping comments like these instead of deleting them like most would. It generates discussion that further educates people.

Gerry Suarez, Jr.

Your FHA Loan Pro!

Nov 23, 2008 02:39 AM

Jay Scharff

Turner Real Estate - Auburndale, FL

Final response to those who existance is defined by this blog.

Tom & Gerry and their friend Jeff.

I have tried to leave this alone after all that has been said but the three of you will not let in alone. So this will my final post to this blog. No cheering necessary.

This blog has been a great source of information for me over the years. A place of lively debate and resolutions to agree to disagree. A place where typos are not met with acusations of stupidity and where apologetic errors are responsibly meet with a hearty dose of ribbing and forgiveness. Sad that this is the state of our world and industry. Sad that the overwhelming need to be right and everyone else wrong out weighs common professionalism and decency.

So let me put to bed some of the "burning questions" from the three amigos. I will not answer all of them because frankly, some of them are pointless to argue. Pointless primarily because the answer requires details which are geographic in nature and of little use to the loyal readers of this saga.

First, again let me thank Jeff for his knowledge and passion. Although it has fallen on deafs ears my praise for his knowledge has not penetrated his skull yet. I fear that unless I firmly kiss his a*$ on this blog he won't get the fact that I have conceeded to his intelligence multiple times. Oh well.

Second, let me thank Gerry for the point that Jeff's comparison is darn near pointless in Florida because a 95% FNMA deal is almost extinct. Again kudos to the loyal followers of the FHA Messiah!

Point #1

In my very first statment on this blog I errorneously assumed that everyone knew about the declining market issue and how FNMA may approve the loan @ 95% but getting a MI company to insure it was impossible in FL.

Point #2

Tom-

As Jeff stated correctly in a later post, Mortgagee Letter 2008-16 stated that the UFMIP would range from 1.25%-2.00% depending on the credit score. Mortgagee Letter 2008-16 was rescinded in its entirety by Mortgagee Letter 2008-22 which left the UFMIP at 1.75% acroos the board. However, it goes on to state that the ML 08-16 is only recscinded until Sept. 2009. At which time the risk based scoring model will come back into play. Again here's the problem with my comment. You three are blinded by your overwhelming need to protect your correctness that you have become to literal. My error was that I said it as a statement of fact, which it is not, instead of a opinionated comment.

The bottom line on this matter is in my opinion, which is what blogging was intended for, the likelihood that UFMIP will reach 2% as the "standard" by this time next year is all but certain. The financial losses that the FHA program will suffer over the 18-24 months will be staggering and unfathomable. Nothing like we have ever seen. To offset the risk HUD will have to increase the fee just to retain a market share which is all this damn industry is about anymore anyway! USDA & VA are both have a higher fee that FHA and have not experienced the fallout as a result of that fee. How long before HUD gets a clue and matches them?

Forgive me for seeing the light at the end of the tunnel and understanding the financial ramifications of HUD's actions today. Forgive me that I cannot detail everything that I see in a written manner where all can understand.

Mark my words all you loyal readers of this saga, bookmark this, print it out, whatever just remember what I said about UFMIP.

Thank you all for your comments and to my new "professional" adversary Jeff. Jeff, you can find me and some other stupid opinions of mine on the cover of Broker Magazine's Sept. 2008 issue as well as their feature article in last year's August 2007 spread. If you need my stupid opinions from the real estate side of things, since I cannot posssibly be able to be good at two cojoined industries, you can look up last year's Florida Association of Realtors conference transcripts in Orlando, FL. Finally, you can look for me in the coming month's to a city near you speaking about the CCIM designation. But then again that is the commercial real estate world which far below Tom & Gerry and the FHA Messiah Jeff.

A final comment before I ever visit/respond to anything on this blog again, may God continue to bless all your businesses in 2009. Remember the same measure by which you judge others, it will be applied to you. God Bless.

Nov 23, 2008 01:12 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

I still need to come back to address the other comments, but I need to address Jay again...

JAY.... . what's sad is not only did you call me out from the get go, but now you mock me because I have over-looked some things. I have not overlooked anything. You still have not addressed the main issue, in regards to what the pricing hits for a conventional loan at % down with a 659 credit score. Not once did you even say that you can't do a 5% down because of the MI companies in Florida. Not until Gerry actually brought it up. Besides, this post was not about Florida. It was a comparison, if it can be done in that state. Yes, my comments have not been politically correct, because you failed to address my main topics specifically with proof and not just babble.

In regards to the UFMIP... that is your assumption. FHA or HUD never said what it would go to if they did change anything. And again, you have your dates all wrong. I can prove it and have. It's in Mortgagee Letter 2008-22. The new UFMIP of 1.75% was in effect as of October 1, 2008. It has been rescinded after Sept. 30th, 2008. SO I have no idea why even bring up Mortgagee Letter 2008-16. Again, you have prooven a lack of knowledge and that being both a realtor and a loan officer at the same time shows that you can't do both. Sorry, but these are the facts based on your comments. Getting back to your FHA assumptions, HUD states that it will revisit these changes every September. That is it... it doesn't tell us what the changes are or will be.

Overall, I am damn good at what I know. And Tom and Gerry seem to know what they are talking about. I never met Tom or Gerry. Tom is a loan officer from Dallas, Tx and Gerry is a loan officer in Florida. You even made a statement that you validated your info. Bingo, my point prooven again. Apparently the other person that you talked to doesn't know what they are talking about. And I will actually be writing a blog about this, titled, 'Two wrongs don't make a right'...

Again, you still can't answer my main question about the pricing hits... you get rates sheets that tell you these pricing hits for all states. Forget about Florida. Your first main argument was that my pricing was way off, that I was wrong. Now you come in here and say that it doesn't matter, because you can't do 5% down in Florida for a conventional loan. No crap... but which is it Jay? Yes, I will sound mean in my comments, because people need to be educated, not misled as you have done on many cases, and still never backed any of your comments up. After 4 comments, you still haven't directly answered my responses. What does that tell anyone? That you are actually wrong and have no idea what you are talking about. I do feel sorry for your clients Jay, I really do.

Lastly, you now mock Tom, Gerry, and myself... but I have not seen one person in this thread actually validate you. And you can't count two other people that hide behind false names and no links. For all I know, it could be you... or a few AR members that actually despise me. But you know why Jay? Because I educated people with the facts and if it's my opinion, I make mention of it in my blogs. And yes, I will say this again, I am not politically correct in my statements, because I have semi attacked you. But you gave me no choice. You tried making me look bad, yet you could show no proof... and now your story has changed. Gee, sounds like some of our politicians.

Anyhoo.... go about and find someone else to attack. But please stop spreading misleading information, unless you can back it up. The mortgage mess is bad enough out there..

Nov 23, 2008 01:53 PM

Tom Burris

NMLS# 335055 - Baton Rouge, LA

Texas/Louisiana Mortgage Pro - 13 YRS Experience

Jeff,

My adjustment is 1.5 on a 95% deal with a 659 FICO(real easy to answer for a 1st year loan officer)

Maybe Jay still funds thru fantasylandmortgage.com <= which I thought went out of business.

Did Jay ever tell you what his adjustments are?

I still wonder whether Jay is better at lending or real estate.... but it doesn't keep me up at night.

Nov 23, 2008 03:05 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

STARLING.... . thank you for the very polite compliments. Just a FYI though, I wrote this post about the new down payment changes. 2009 new FHA down payment changes... I don't think I mentioned credit scores, but yes, FHA now has credit scores. They even did before the new down payment changes. It says that you can't have below a 500 unless you have 10% down. So the old days of no credit scores even with HUD are gone. thanks

RANDY.... . of course not, that many lenders in your area weren't doing FHA loans. It was to expensive to be FHA approved and it still wasn't hard to get someone a conventional loan. Even if FHA might have been a better option. And if they couldn't do VA, they would put them into a conventional loan, when maybe at times FHA woud still be better.

I once had 2 different loan officers tell a client of mine that conventional was better for her with 10% down. It wasn't true, I even did the numbers just as I did here. But they both told her the same thing. But, they never showed her the numbers.. but I did. And after doing some research, I found out that one of the lenders wasn't even VA approved... wow, imagine that.

DANIEL..... . glad to see you come back to defend your weak comment. Calling me a liar, but not able to defend your statement with proof? Sad, and one of the reasons why we are in the mess that we are today. Loan officers like yourself that don't know what they are doing. Sorry if this is rude, but please leave the business.

CHRIS>..... . yes, those that didn't have FHA and used subprime as their back up hurt us some as a country. And even more so, those that were FHA approved, but still took borrowers subprime because it was easier. And I know this from working with 2 loan officers that did this and from speaking to loan officers after work.

ROBERT..... . bingo, just as I mentioned in this post. It's kind of sad that Jay and Daniel didn't agree at all. Not looking for people to always agree with me. If you disagree, hey,I can take it. But be able to back it up with facts and not opinions. They couldn't do this and I don't see them coming back into this whole thing. Sad...

KATHY.... . thank you very much for the compliment and for featuring my post. I'll take a look.. thanks

LUCIEN..... . not to sound rude, but I really would agree with to many people unless you know the guidelines and what you are talking about. As stated, you have to have MIP for 5 years, no matter how much you put down. And it falls off at the 78% LTV level. thanks

Nov 24, 2008 02:39 PM

Anonymous

Amazing how many 'professionals' can read this post and jump to wrong conclusions.

Nov 25, 2008 12:33 AM

#60

Tom Burris

NMLS# 335055 - Baton Rouge, LA

Texas/Louisiana Mortgage Pro - 13 YRS Experience

That was me Jeff.... I didn't realize I wasn't logged in....

Nov 25, 2008 12:37 AM

Greg Knapp

Artistic Real Estate Group - Plano, TX

- Experience Counts!

Jeff, you are correct in pointing out that many subprime originations should have been FHA loans! I blame FHA for this. It is much harder for a mortgage broker to get FHA ceritified than it is to get approved by a conventional lender, and so many mortgage originators did not have access to FHA! And this is in spite of the fact that Originators can make more money on FHA! Once again, your governmnet at work!

Nov 28, 2008 02:18 AM

Mark MacKenzie

Phoenix, AZ

Hi Jeff,

This is a great statement: "The realization has been that 30% of the subprime mortgages in the last 5 years previous to the last 2 years should have been FHA mortgages, not subprime."

I completely agree with this statement and I don't doubt that it is true.

I am not a lender, bot for whatever reason, FHA seems to have been the red-headed step child when in fact it is perhaps the greatest and most credible resource for first time home buyers.

Nov 29, 2008 03:27 AM

Anonymous

Joseph Thomas

Hi, I am thinking of refinancing my mortgage using the FHA loan and as you mentioned I'll be paying 1.75% as the fees for that. Can I show this fee amount while doing my federal tax filing?

Dec 04, 2008 12:06 PM

#64

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

JOSEPH.... please e-mail me and I can answer some of your questions.... jbelonger@ihmci.com

thanks, jeff

Dec 04, 2008 11:47 PM

Greg Wilson

1st Cornerstone Realty - Schaumburg, IL

Hey, thanks for the great post. Its always good to see a comparison side by side of the different loan products.

Dec 05, 2008 12:36 AM

Frank Mancino

Finance of America Mortgage - Hamilton, NJ

Frank Mancino

I enjoy reading your blogs.

Dec 16, 2008 07:54 AM

Norma Brandsberg

Marks Realty Co. Inc., Lynchburg, VA, 540-586-9496 - Forest, VA

Do you have an updated chart with current rates? That might be useful to post.

Mar 27, 2009 12:29 PM

Art Marine

Mortgage Solutions Financial - Lake Oswego, OR

Loans that Fit your Life

Good analysis...I particularly like your point about redirection of loans away from FHA by originators that were not approved to do FHA. In my 25 year career I have run into dozens and dozens of folks who were sold subprime loans because it was better for the originator. These customers would have been better served with FHA but ended up with high rates and prepayment penalties.

Oct 05, 2009 03:18 AM

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