FHA - Lending's Best Kept Secret
Posted May 6, 2008 3:35 p.m. EDT
Updated May 6, 2008 4:35 p.m. EDT
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.