I just heard an economist on Fox News state the only way a person was going to be able to get a home mortgage would be excellent credit with 10-20% down.
I thought they just passed a new FHA loan with a 3.5% down payment beginning Oct.1st.
Fox? Fair and Balanced? The NO SPIN Zone? Come on, Karen!
Am I right? There is a new FHA program?
Yes, there is a new, somewhat short-term FHA program.
Karen, what Greg was saying is that "Fox News" is in the business of selling fear, not necessarily truth. They cannot be trusted as a sole source of good info.
Look a few threads below this one for "New FHA Guidelines as of October 1 , 2008" and you'll see links to the new FHA program.
Greg, Phil, I am glad there are intelligent and alert people still around in this country (not FOX news).
Nate, we have nothing to fear, but fear its self.
Folks:
Karen asked a business question.
This is a business site.
Please let's try to be professional and keep it this way.
Leo Gauthier
Leo, I am sorry. I thought my flip answer would help. And Phil did answer her question and provided her additional sources to confirm it. While Nate offered us congratulations on being able to discern between real and manufactured news. Shame on all of us for not wearing our business suit and tie. Please accept my apologizes. ;-)
Lighten up, Leo.
Every member on this page has been here a lot longer than you. We're friends and enjoy a bit of business mixed with a little harmless humor. It's Karen's thread and if she has problems with any responses, she's free to delete the offending remark.
Be sure to check with your mortgage brokers on new programs that they are working with their lenders to develop. I do a lot of work with Suburban Mortgage and they are working on a 1% down program with a fixed rate 30yr first and fixed rate 30yr second at about 2% over the first. The FICO will need to be higher than FHA, but that is the essence of a risk based program. I think we will see more innovative risk based programs in the future.
With that said, I think that FHA even with all the changes will be the go to program, but we should encourage mortgage brokers to keep looking for ways to offer different products.
The FHA increase in the downpayment will be effective on Jan. 1, 2009.
MIke, you are very correct with what you suggest. I work closely with First Liberty Financial and they are working on similar programs to what Suburban is doing.
For now, stick to FHA. New risk based programs will be introduced by lenders soon just to compete with FHA.
This reminds me of a conversation that I had with a potential buyer; she told me that nobody can get a loan now because she heard in on the news. Can you believe this? The media is dangerous to our economy. I simply informed her that I had a closing just the day before and the buyer obtained a FHA loan.
Loans are still available; FHA requires a 3.5% down payment with flexibility on credit scores.