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 photo credit: jc.westbrook
The FHA now seems to be the only hope for single family mortgages for people with less than perfect credit and those with limited money and savings. The FHA, in 2007, held a mild 7% of Americas mortgages, but now in 2010 they hold a whopping 30%. Thats a huge increase! Were now in a pickle because prior to 2007 the FHA suffered heavy looses on loans, even losses below what the law allows. Now, they need to cut cost and/or increase revenue.
Im sure normally most people wouldnt care, but they are the only ones keeping the middle class afloat at the moment by backing loans that banks wont. Banks simply arent lending to the average person, you have to have stellar credit, a lot of money, or a back pocket full of collateral, which most of us middle class slugs dont have. They also changed the buyer concessions.
The FHA also banned the common practice of having the seller contribute to the buyers down payments through a non-profit middle man, who also took a piece of the contribution for themselves, go figure!
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Posted on August 23, 2010 12:23:13 by  IPTV.Boyz
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