Minnesota Real Estate Investors Association, Inc.

Minnesota Real Estate Investors Association, Inc.

Is FHA the Next in Line for a Bailout?

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Why not? Every other financial institution has received one, isn’t it about time the feds bailed out themselves. After all, it’s not their money, its ours.

Here is a report I found on Mortgage News Daily
http://www.mortgagenewsdaily.com/channels/video/112280.aspx

The only reason I think that FHA is even talking about a bailout, is because their counterparts Fannie Mae and Freddie Mac got a bailout. Now granted, there are a lot of FHA borrows who are also going through foreclosure, but I haven’t seen the same kind of numbers from FHA as I have from the other two. Partly because FHA never got into the no money down, cash back and no doc transactions that Fannie Mae and Freddie Mac did.

FHA has become the primary lender in my area and I expect it to stay that way for a long time. FHA is a good loan program for first time home buyers and will be my primary focus for buyers when I sell my rehabs.



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Jeff Smith10/22/2009

jeff@luinc.comEven with an bump to 5% down from 3.5%, the fha program still allows enough seller contributions to owner/occupants to make it an attractive route to suggest to your tenants when ready to cash out.

Jeff Smith10/21/2009

jeff@luinc.comThanks for the article. I too am directing my buyers to fha loan products. Mine happen to be current tenants that are trying to purchase the homes they in which they already live, but with a 3.5% down payment seller contributions over 3% in many cases it certainly makes sense.


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