BIG BENEFITS TO FHA FINANCING in Today's Decling Marketplace

By
Mortgage and Lending with NFM Lending , Chad McShane, NMLS #342881 NMLS 342881

 

According to a Fannie Mae policy statement released last month, its declining market flag calls for a lender to more closely examine whether the home's appraisal accurately reflects current market conditions. It also requires that borrowers who would otherwise have qualified for a loan with less than 20 percent down bump up their down payment by 5 percent. It doesn't affect borrowers making a down payment of 20 percent or more.

Since many first time home buyers do not have 20% down I have recommended FHA financing now that Fannie Mae has deemed most of Minnesota as a "decling marketplace."   FHA loans are an excellent alternative to help a first time homebuyer get into the home they want.  I have ssen many advantages to FHA financing now that the conventional market place has tightened up it's guidelines.  The advantgaes include; lower mortgage insurance payments, lower interest rates, no credit requirement and lower closing costs.  I do not seen any advantage to taking a first time home buyer to the conventional marketplace.  Especially if their Loan to Value is over 80%.

Comments (1)

Lindsey Hasford
Edina Realty - Elk River, MN
Bringing you home...
I'm glad that appraisals are being a better reflection of today's market than they were for awhile! It seems like it takes awhile to catch up doesn't it?
Mar 10, 2008 03:00 PM