It’s being called the new subprime (in a good way), but these old government programs have been around for a long time. They have just been neglected by a mortgage industry that found subprime loans to be easier and quicker to do. If all the loan officers out there had been a bit more trained on the merits of FHA and how the program works, we probably we’d have a significantly smaller amount of subprime loans floating around out there and going into default. Now that the subprime market as almost completely deteriorated lenders are turning to FHA once again for their borrowers with less than perfect credit.
FHA can qualify all those borrowers out there with credit challenges and still can do the ever more elusive 100% financing. But as mentioned before, the trick is to get yourself a professional and competent lender to set up your FHA loan. Rates can be as low as the mid to lower 5.00% range. And the best part, NO PREPAYMENT PENALTIES.
Contact Ryan Jensen @ rjensen@thejensengroup.net
Good post. With all the changes in the industry of late, it's a challenge keeping up. Thanks for the great info.
Posted by: Chuck Marunde | April 25, 2008 at 07:59 PM