property: FHA "Buy and Bail" Sees New Underwriting Revisions
- 09/23/08 06:52 AM
In yet another of what seems to be an endless stream of loan revisions, FHA announced that it will again tighten its underwriting guidelines when borrowers convert their existing homes into rentals in favor of another principal residence.While I can understand the reasoning behind the latest news, it will only continue to make loans harder to obtain which may further hinder the economy by slowing homes sales, which includes those in the Denver real estate market. What the new restrictions will do is to make sure that borrowers will be more apt to pay both mortgages instead of defaulting on one … (0 comments)
In yet another of what seems to be an endless stream of loan revisions, FHA announced that it will again tighten its underwriting guidelines when borrowers convert their existing homes into rentals in favor of another principal residence.While I can understand the reasoning behind the latest news, it will only continue to make loans harder to obtain which may further hinder the economy by slowing homes sales, which includes those in the Denver real estate market. What the new restrictions will do is to make sure that borrowers will be more apt to pay both mortgages instead of defaulting on one … (0 comments)
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