FHA Changes Are Near

Potential home buyers looking for FHA loans are soon going to have to make larger down payments and will need to have a higher credit score under changes announced today by HUD Secretary Shaun Donovan.

I have blogging about this for a VERY long time, as the writing has been on the wall from late 2008. As FHA’s Capital Reserve has diminished to practically nothing, this is pressuring lenders to increase credit standards before lending out money.

You may ask, “Why would they do this to SUCH a great program? It’s saving our housing market”

I suggest you then ask yourself, “Why did they stop doing 500 stated? It EXPLODED our Real Estate Market!!!!”

You have to understand that if FHA mortgages continue to default, it does the housing market no good. What’s the point of being able to close on 100 new homes, when 15% will foreclose, only to effect the neighborhoods values. (Sound famliar?”)

I could see the headlines if we don’t take action now- “FHA- The NEW and IMPROVED SubPrime Crisis!”

My prediction is going to be a 640 minimum credit score with a 5% statutory investment in the property.

Let’s see what happens.

Tags: fha guideleines, fha loan, fha mortgage, fha new guidelines | Category: Texas Mortgage Info |