Triangle Business Today

FHA - Lending's Best Kept Secret

Posted May 6, 2008

With all of the negative press surrounding the housing and lending markets, I thought it was time to discuss a positive aspect of the lending market – FHA lending. The Federal Housing Administration (FHA) has long been offering these loans to consumers who have needed a little more help than borrowers who traditionally would fit into “agency” loans – either Fannie Mae or Freddie Mac.

FHA has become more attractive recently due to the fallout from the subprime crisis, and has opened doors for many consumers wanting to own a home. Here are a couple of program benefits of an FHA loan… flexible underwriting, higher ltv (loan to value) options – meaning lower down payments, competitive interest rates, guaranteed by FHA so they should be a viable option for years to come, allows for cosigners and allows “gift funds” to help with closing costs and down payments.

Flexible is a good word to describe the FHA program – so if you’re in the market for a home and haven’t discussed an FHA loan with your Mortgage Banker, talk to them about the program to see if you and your property can qualify for this little gem in the world of lending.

Jeremy M. Salemson
Corporate Investors Mortgage Group, Inc.


This blog post is closed for comments.

Oldest First
View all
  • Wags May 13, 2008

    So we go from sub prime at 100% to FHA at close to 100%. The fact is, by using a down payment assistance program, the borrower can get into a home with little to no money into the transaction. FHA is available with a 580 score, se we have the feds guaranteeing sub prime borrowers. Is this the next mortgage meltdown?

  • egriffin2 May 8, 2008

    And FHA is the solution for 100% financing too. I have many borrowers who are buying their first homes at a low interest rate and only needing a few hundred dollars to do it! It's a great program.

About this Blog:

Jeremy Salemson, CEO of Corporate Investors Mortgage Group, blogs about economic trends and data and their impact on Triangle business. Each week, he interviews a Triangle-area business leader for a personal look at the local economy.