FHA Loans and FHA Loan Requirements

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Mortgage and Lending with All California Lending BRE# 01458390

FHA loans are back in the spotlight.  Created back in the 1930's to help pull the nation out of a severe housing crunch, FHA loans are once again ready to help stabilize the mortgage and housing world.

In the 1930's, the foreclosure rate was as high as 50%.  We are nowhere near that level today, but things are bad, and there are no sub prime lenders willing to lend at 100% on stated income programs to bail out homeowners.  There is, however, FHA loans. 

Many in the mortgage industry are not overly familiar with FHA loans, especially here in California.  There have been many other options in recent years, but now with the credit crunch, FHA loan requirements are looking very attractive. 

If you are unfamiliar with some of the FHA loan requirements that make them an attractive choice over Fannie Mae and Freddie Mac backed conforming products, please read my FHA loans Vs. Fannie Mae & Freddie Mac conforming loans post.  There are many advantages, from down payment and fico score requirements to seller contributions and allowable co-borrowers.

FHA loans are set to become a mainstay again.  Additionally, there is legislation in the works that could further relax the FHA loan requirements in the form of HR 1852.  Among other items being discussed are making the new, temporary FHA limits permanent and allowing for no down payment financing, or as little as 1.5% down payment.

Be sure to check in often, I will be keeping tabs on the progress of HR 1852, as will as talking more about FHA loans and FHA loan requirements.

 

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