FHA is leaving low fico score owners in the dust mid July
Published by popelynne May 20th, 2008 in Business. by popelynne Tags: appraisers, Brian Montgmomery, Federal Housing Authority, FHA, Gardena and Palos Verdes, Hermosa Beach, Kenneth R Harney, Lomita, Manhattan Beach, National Association of Real Estate Editors, Redondo Beach, Torrance.
HURRY-for only one more month- FHA will give anyone with a job and 3% down a heck of a great deal no matter what their credit score is. FHA is back in the drivers seat and it’s NOT going to be “one size fits all” anymore. Sorry, low fico score owners….your window is about to close!
1st gear was a fast start- it was the only place to get a loan with 3% down.
2nd gear-FHA moved into first place as other money tried to adjust to the reeling screetching stop of loans. The program was the way things used to be, one size fits all. Everyone with pay stubs proving their job got the same deal, same down, same rate, same rules. This left out the self employed, stated income borrowers, including realtors. Something will turn up sooner or later for us.
Wow, this allowed people with low credit scores to get a home with FHA money.
Home buyers are trying to find their place to jump in. Hurry because its about to stop mid July.
3rd gear-FHA is going to reward higher fico scores and shift into risk-based systems of fico scores and down payments. Kind of like a normal lender before sub-prime, right? Yes.
And FHA is planning to modernize the agency and win back the market share. It started with higher loan limits for California and the East Coast and it won us 729,750. up from 417K.
Realtors should be screaming to the people that have low credit scores.
The buyers should say “Honey-put down the paper, lets buy before July.”
The sellers should follow the realtors advice and prepare for famous Killer appraisals-if it’s FHA it better not have peeling paint anywhere pre -1978 lead based (so-paint) and no crack in any windows (so-replace) and carpet if needed. My photo is to illustrate upside down and peeling paint.
Facts in this article came from LA Times Sunday May 20, 2008 buried on page 7 section K by Kenneth R. Harney of the Washington Post. His article reports on the May 8th speech from Brian Montgomery, the top FHA official speech at the National Association of Real Estate Editors. Author may be reached at kenharney@earthlink.net This should have been front page news. Lets blog it into urgent!
appraisers Brian Montgmomery Federal Housing Authority FHA Gardena and Palos Verdes Hermosa Beach Kenneth R Harney Lomita Manhattan Beach National Association of Real Estate Editors Redondo Beach Torrance
I doubt I have a chance at this I just noticed this ad after Googling it . I’m trying to buy a home in Tn, prefer one with at least 5 acres. for my hourses and as well a non profit org Im trying to start there. for kids with handicapp and as well kids with cancer, and kids who want out of the gang life. to have a place to learn trades, take care of horses, and help handi capp kids, n kids with cancer feel free and live life again. Im a singer/songwriter trying to make it in Nashville, n as well a truck driver when i’m not writing songs, I have a credit score of 515 and still busting my butt to get all my past bills paid off, do to a few old customers of mine who went bankrupt on me when I owned my own trucking company in 2000. I have recently been working on my own and so far making a decent living at it. I just would like to buy a home n help others out. what do I need to do. I was told by a credit advisor that paying all my bills off right away. will only hurt my score more. to make small payments even on all my late ones. so I have been doing that little by little. is there anywhere in this wonderful country that someone who got hit by others, have a way of getting a home of there own…. thanks M