The Rise of the FHA Mortgage

Mortgage and Lending with Home Mortgage Lending

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.


Comments (3)

Jacob Webster
Sagamore Home Mortgage, LLC. - Zionsville, IN
Indiananulls Senior Mortgage Consultant
Its all going to FHA.   I think FHA got jealous and decided to take down sup-prime, which need to be taken down anyway.  Its kind of like when i go to pet my one dog and give her attention the other gets all upset and barks.  Good luck! 
Apr 10, 2008 02:35 PM
Chuck Christensen
Your Financial Coach - Bellingham, WA
I hear ya brother In Washington State the FHA rates are even lower than Conventional...what the ? is going on here...If people don't have a wealthy relative and want to purchase a home...they better do it now...
Apr 10, 2008 02:42 PM
Jeff Wenzlick
Home Mortgage Lending - Toledo, OH
It's make me wonder if FHA has the infrastructure in place to handle the surge in business.
Apr 10, 2008 02:55 PM