The current lending environment is extremely volatile, and loan rates as well as products change significantly week to week. In order to keep up with trends, I attended a seminar on FHA financing that was put on by a reputable mortgage company that I work with (free seminars can be a valuable and cost effective way to keep educated with trends in the industry).

It’s a good time to learn about FHA. It’s projected that 48 percent of all home loans will be FHA-financed in 2008, compared to 2 percent in 2007.

As 100 percent financing options are becoming a thing of the past in the conventional financing market, FHA is becoming a more prominent financing mechanism for people buying a home.

But some of the reasons people typically cite for not wanting to use HUD financing is because they believe there are extra inspections, more paperwork, a requirement to invest 3 percent for a down payment, only available for first-time home buyers, and that all borrowers must occupy the property.

These concerns are unfounded.

First of all, HUD requires an appraisal not a special inspection. If the appraiser finds issues that

Continue reading "Don’t Fall for These Myths About FHA Loans" »

Posted on June 25 at 10:34 AM | Permanent Link | Add a Comment (5)