After spending 12 years in the mortgage business, I have finally found myself writing FHA loans. And not just a few; alot of them. Historically, I steered clear of them because there was no advantage over conforming loan products to justify the additional paperwork and scrutiny of the subject property. Boy have times changed. With Fannie and Freddie adjusting their pricing for credit scores and implementing "depressed market" LTV restrictions, FHA has become a saving grace. Plus, FHA has really reduced the amount of scrutiny that they are applying to the property reviews. I'm still seeing a fair amount of resistance from sellers on entering into purchase agreements with FHA approved borrowers, especially REOs. With more Fannie/Freddie restrictions likely to come, FHA will play even a larger role in real estate financing.
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