BrokerIPTV Real Estate News and Videos

BrokerIPTV: Today we are talking with Pete Lansing, President of Universal Lending. Pete thanks for being with us.

Universal Lending's Pete Lansing says sub prime is out and FHA is in

Pete Lansing: You bet.

BrokerIPTV: I appreciate you be in here. The topic is FHA. They seemed to be very popular and in vogue again, why is that?

Pete Lansing: Well, I think mainly because the subprime market has gone away. The reason the subprime market took FHA away form us in the first place is that there wasn't a down program. It was easier to qualify, we were utilizing tools in the industry that really FHA became second to, compared to what it is now that the subprime has gone away. So, with the fact that there is a down payment program and that there is the ability to be able to do such a low down payment, easier to qualify FHA, certainly around nation has come back to be probably the number one lending program.

BrokerIPTV: Is FHA I mean whats so great about it and what is not so great?

Pete Lansing: Well, this is a government insured program. One of the best parts about the fact that it is a government insured program is that gives liquidity to the investor base keeping interest rates low. If there is a down side to FHA, it has do affect that you have to qualify, you do have to follow the insuring program and guidelines of the FHA. I don't think that specifically bad, but there are some people that have been in the real estate industry that really don't even have or have never done that before and now they are following those guidelines, only negative is that there is some limitation to how much you can barrow.

BrokerIPTV: In some limitation and whether or not the property even qualifies for an FHA loan?

Pete Lansing: That's true. FHA would look at the ability to have a good property. They will ask the lender and appraisers do a review and make sure that it meets up FHA guidelines as a qualified property.

BrokerIPTV: Right, who should be looking at FHA, who should not?

Pete Lansing: No question about it, first time home buyers should be looking in to the FHA program.

BrokerIPTV: Finally, a rumor circling around may be reducing the down payment minimum from 3% to 1½%, is that do you think coming down the pike again for the government trying to stimulate the buying and the using of FHA?

Pete Lansing: Very possible and it is in the FHA bill that right now congress is talking about, both in the senate and in the house are discussing it. they are negotiating and we never know it that negotiation is going to allow us to have lesser of a down payment or not, but it certainly has been a discussion in congress and that would be a sure possibility disseminating even more FHA, if the normal down payment would drop from 3%, so the lower number of 1 and 1½% that we have been told of that

BrokerIPTV: Pete thanks, great information and I appreciate it.

Pete Lansing: Glad to be here.