FHA Week - Article 5 - Week in Review PDF Print E-mail
Written by Chris Richter   
Friday, 11 July 2008 08:00
FHA loans are the safest loans that still allow for financial creativity.

This week, we've reviewed a few aspects of the major FHA overhaul on Monday, July 14th. They've included:

  1. Credit-driven fees or premiums charged to lower credit scores
  2. Options for Refinances
  3. FHA for Condominium Purchases
  4. Pre-arranging FHA financing as a tool for Sellers
This of process of adjusting FHA loans to more accurately reflect the risks of homeownership is probably appropriate.

Credit Changes Conforming loans from Fannie Mae and Freddie Mac began charging extra fees to low-credit borrowers this year. FHA has essentially implemented the same. More than ever, credit scoring drives the cost of homeownership.

  • The Credit Center is a great primer for credit questions.
  • To review your own credit report for free, we've outlined the steps in this article.
  • If you see inaccuracies, hire a professional. Our Credit Optimization section is kept up to date with organizations where we've seen success in the past.


    • Refinance Loans For refinance loans, the FHA cash-out loans are currently the most liberal loans in accessing equity. For standard rate & term refinances, the yields on FHA loans are such that sometimes a buydown can be a very effective tool if you are going to be in your home for a while. For existing FHA borrowers, the streamlined FHA loan programs will only have a 1% up-front mortgage insurance premium and some loans from the higher rate periods in 2008 may even see refunds.

    FHA loans were designed to aid in homeownership by making it both possible and, ultimately, successful. As the abusive lenders close their doors and we leave the subprime era behind us, we're seeing a renaissance of sorts in FHA lending. It is practical. It is safe. It is secure. It is fair.

    We hope this past week outlined and clarified some of the massive changes that are around the corner.

    If you have any questions in reviewing whether FHA options are possibly a fit for you, contact us for more information.