Dissecting Today's FHA Loan

Real Estate Agent with Coldwell Banker Residential Brokerage 01845539

Is an FHA Loan Always the Best Choice?

Home Lending In North San Diego CountyAs a North County home buyer, you likely well know that there are a variety of home loan and mortgage products available to you, each with its own list of pros, cons and appeal. A Federal Housing Administration (FHA) backed loan is one such option for first time home buyers. However, according to MoneyWatch, if you're thinking about possibly taking out an FHA home loan, there are a few things to consider.

First, a little background for you - FHA loans help home buyers purchase their first homes by making it easier for them to qualify. They require smaller down payments and feature low interest rates lower than most other viable loan options, which made them ideal for buyers who might not have the highest of credit scores or huge balances to put down as a down payment. Of course every pro has its con and in this case it was usually a small one and that is that buyers with an FHA loan usually have to pay a tish bit more for mortgage insurance.

Well, here's the thing....apparently the FHA is experiencing a cash crunch of sorts. As MoneyWatch indicates, "Congress requires the agency to keep cash balance equal to at least 2 percent of all outstanding loans in its mortgage insurance funds. But due to the slew of bad loans taken on during the housing crisis, the agency isn't meeting that goal."

What does this mean?

Click here to read the rest of my blog post and find out!

Related: What would the lending world be like without Fannie Mae and Freddie Mac?

Thank you very much for reading my blog! I hope you found it helpful. If you enjoyed reading this, please let me know by adding a comment below or sending me an email. If you have any additional questions please submit those as well and you may see them on a future blog post.

I’ve been writing a lot lately about interest rates, mortgages and loan options. Here are a few of my recent posts:

  1. Lending Without Fannie Mae and Freddie Mac – What Would it Mean?
  2. Obama’s Take on Mortgage Reform – What Do YOU Think?
  3. Mortgage Rates Have Hit a 2-Year High – Where are they Headed?

Casey Cooke North County Real Estate

Thinking of selling your North County Home? My team of experienced professionals can help you whether in Carlsbad, Vista, Oceanside, San Marcos, Escondido, or elsewhere in North County. We specialize is helping homeowners sell their North San Diego County homes for top dollar with minimal stress and hassle. Whether you’re selling your home, or looking to buy North County real estate, call me directly at 760-216-6604 or email me at Casey@CaseyCooke.com.

When we talk, I will explain the process in detail and answer any questions you may have. Then we get busy right away marketing your home with professional photos, video tours, high quality print materials, and much much more! If you or someone you know is thinking of selling their home in North San Diego County, you owe it to yourself to check out the #1 Realtor at Coldwell Banker in Vista Village, Casey Cooke!

Casey Cooke is a licensed Real Estate agent at Coldwell Banker in Vista Village. License#01845539. Phone: (760) 216-6604. Casey@CaseyCooke.com.

- See more at: http://servingnorthcounty.com.

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