After years of losing market share to private lenders, the FHA is poised to make a major comeback in the low to moderate income borrower market. The Federal Housing Authority’s insured loan program has grown significantly since the “sub prime” market problems that we have seen for the last several months. According to Brian Montgomery, FHA commissioner and assistant secretary for housing at the U.S. Department of Housing and Urban Development,” FHA has doubled its loan volume and is on track to reach some 240,000 borrowers in 2007”. To read this article from REALTOR®Magazine-Daily click here.
This is good news for borrowers everywhere. A reformed and streamline FHA program that can compete with a “sub prime” private lender is in everyone’s (except maybe the sub prime lender) best interest. FHA programs not only can help keep the market stable and moving, but they are also very good at educating borrowers about what is expected from them regarding home ownership. Most “sub prime” lenders only care about getting the loan to closing and getting paid for the origination of that loan. Lot’s of people got loans they had no business getting in the first place and we are seeing the results of that now with record foreclosure rates.
Now don’t get me wrong, I am all for the free market and I believe there is a place for “sub prime” lenders. But I also know that a lot of people were taken advantage of and not really educated in what they were signing up for with some of these loan products. A reformed and streamlined FHA will help educate people to the realities of home ownership and also what mortgage choices people have and what those choices mean.
If you though that you could not buy a home because of credit or income reasons, were smart enough to reject a “sub prime” loan, or did not have enough cash for the down payment, now is the time to take a look at the new FHA. There is even a program for buying a HUD home for $100 down and getting a loan for any fix-up cost.
This may be the perfect time to enter the exciting American dream of home ownership. Call me today and let’s get started!
Michael Bradford
770-862-8002
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment