FHA Loans Rumor Alerts - 3% seller concessions & FICO scores - Part 1 of 2

KAREN... . well, it would be stupid. One theory of doing this is because seller's raise the value of the house to compensate what they give back to the buyer. There is some theory with that which has a point, but if you have really good comps of other homes in the area... it's just the govt being the gov't.

LENN.... . you bring up some other excellent points that I didn't mention. Overall, in realty, there has been some talk to kill of FHA and let the market get back to itself. Now, it's some idiots way of thinking that we need to make buyers put more money down.... but why not just make certain restrictions or higher debt-to-income ratios.  Overall, this is just horrible thinking...  crap people...  get with the program, it's the economy, not so much these mortgage programs.. and the lack of jobs. I wish they would wake the "f" up.

JEFF.... .  my pleasure and thanks for following me.

ANGELA.... . it has increased tremendously in the last 2 years. In my opinion, it's been mis-managed by HUD and now they are blaming it on other reasons and issues.  FHA loans are and will be a vital part of us trying to get out of this mess, if done properly. thanks

LARRY.... . yes, there is tons of disinformation out there... and i will talk in more detail, in Part 2, about the credit scores and why some companies will and can go lower... and how this works against so many.  thanks

MISSY.... . my pleasure stranger.. it's been a long time.. and yes, it was a good time and it was great to actually talk to your daughter some and to hang out, considering that she was sick last year.

BARB... . I am not sure what you mean by wipe out. I just sent you an e-mail and will try calling you.  But there is a requirement that all FHA approved condos be updated in the system every few years. I am not sure if it's 2, 3, or 5... I will find out. But you can't do spot approvals now. The whole condo association must be FHA approved now. Please let me know it his is what you meant.. thanks

KRIS.... . I agree, until i see a HUD mortgagee letter or read something that HUD put out on their website. And yes, I definitely hate hear this stuff from realtors and even loan officers, that have no clue in what they are talking about.

GREATER MORTGAGE SOLUTIONS aka GENE.... . I agree with that. I wrote about that in the beginning of October. But here is my question to you... should we keep writing about stuff that floats around in congress, that hasn't materialized, and make it sound like fact?  What I read never said that this might happen.  I have read articles about the 5% down and the seller help going from 6% to 3%, and they made it sound like this is a done deal. It's not... they have been talking about this for more than a few months now...  and it's still 3.5%.

Overall, my whole point to a blog post like this one is to kill such rumors, even if these things are in the works. Because you know why?  It's not real yet. And it might never become real. We need to post stuff like this to make not only the consumer aware, but other like-minded individuals that might think otherwise. Again, just my opinion on that...  but until it's a guideline and not just bar chit chat, it's a rumor.  Because it's not true... at least not yet.  thanks for your input.

KYLE... . you hit the nail on the head. Yes, there is some truth to this, that HUD has even said there will be changes in the near future.  But, the reality of it is, for now, it's not a fact. It's all talk and assumption. And I will be talking about this in my part 2 and in an update later this week.  All I wanted to do here was to say that it's a rumor now, not a fact.  thanks

MELISSA.... . isn't that the truth.. or is that a rumor?  Wait, or is that fact... lol  Thanks for your input

ALLISON.... . thanks for the kind words of wisdom... to me, even though this is still being talked about, and they might come out with a new guideline soon, this is still a rumor. It's not a hard fact, hence why I felt I needed to write about this.. thanks

BRIAN & MARIE.... . you have to love that one. I have one better, which I will be explaining in my part 2 blog. I have talked to a few potential borrowers lately that have said their loan officer told them that it was a FHA guideline. And for the most part, it wasn't. It was that lender and or investor that had investor overlays, tightening up on the FHA guideline. But the loan officer doesn't make this clear and just blames it on FHA>.. sad and lazy...  thanks

JAMES.... . thank you very much for the compliment.

PATRICIA.... . first off, thanks... secondly, yea, that definitely drives me nuts also. But what drives me even more nuts is the fact that this is not fact yet... it's rumor, because the gov't has been talking about it... and so has FHA/HUD...   but it's not a guideline yet... which means to me that it's rumor or hear se... but not implied yet.  thanks

MICHAEL... . I understand your first part of the comment... but I have to be honest, you lost me on the end of the 2nd part. Here is what you said... "If you are going to make a statement, you better know your source. According to blank the FHA is going to blank."

My question is, what does the underlined part me?  thanks

PAUL.... . I didn't check yahoo finance yet, but do u have a link to the article stating this?  In regards to the credit score part... well, I could see this... but again, as you stated, it wouldn't matter.  Investors on Wall Street aren't buying those types of credit scores anyhow... which I will talk about in part 2.  thanks and thanks for the good feedback.

MICHAEL.... . I will agree and disagree with you...  because not all industry related news is correct or true. Hence why I partially wrote this blog. As I mentioned, I have seen some people actually write about the 5% down and or that seller help has gone to 3% now... and that is not true.  So, if you believed everything you wrote, meaning that you read all industry related stuff, you would be getting some wrong information.  Just food for thought... In any case, thanks for the kind words.

DAVID..... . thank you very much for those kind words and for stopping by. thanks

JON... .  I truly appreciate those kind words... but I will be honest.. I am always fearful of what I write, because I am human and can make mistakes.  But because I preach so much in my blogs, or try to dig up information... and because things change so quickly... and that I do have many that look to me for this kind of information... I just would hate to let anyone down that one time...  hence the word Expert... an expert doesn't know all... that is a Clavin.. lol  Cliff, from Cheers...  Anyhow.. thanks for the comment.

JEFF.... .  well, I think those of us that have that kind of common sense should know that.  It's those in office that try and get the vote from others... or do the favors, or cursh things... just because it would benefit them, and not the average consumer. I kind of wrote about this and the mentality of the gov't and their greed in this post.  Are we living in an era of nuts and bolts? thanks