Yes it is true, it's an FHA World and a combination of FHA Mortgage Loans and the USDA Rural Home Loan will be the staple for some time. USDA Rural is actually up 475% in Arizona over this time last year!
Businessweek states that a new accounting rule may require Freddie Mac and Fannie Mae to increase their capital by up to 75 BILLION which raises new talk about more behind the scenes tightening guidelines.
Here's a few things that are making FHA mortgage loans even more attractive for buyers right now:
- Not affected by declining markets and the inability to get private mortgage insurance
- Still allows financing WITH a down payment gift so a buyer can get into a home with ZERO DOWN
- Buyers with higher credit scores will soon get lower upfront Mortgage Insurance Premiums
- Buyers with spotty credit can Tell Their Story, create a credit profile and still get approved
And this will be a very VERY popular FHA mortgage loan over the next 12-24 months and use this to nurture and attract First Time Home Buyers.
- The FHA 203K Rehab Mortgage Loan can be used to buy a bank repo, fix it up and have instant equity. And with limitations, it is available to investors.
Gotta love FHA!
Paul "FHA Man" Dunn