Fed to expand FHA loans

Discussion in 'Politics' started by AugustaGator, Aug 14, 2019.

  1. AugustaGator

    AugustaGator Junior Member
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    U.S. Will Back More Condominium Loans Aimed at First-Time Buyers

    The move, to be announced Wednesday by the Federal Housing Administration, could help revive the entry-level condo market for first-time buyers because FHA-backed loans require only a 3.5% down payment and lower credit score than conventional loans.
     
  2. diehardg8r

    diehardg8r Junior Member

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    Because everyone has a RIGHT to own a home. Wanna place a bet on the favored persuasion?
     
    • sminings

      sminings Well-Known Member

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      Couldn't read the article but FHA has always provided financing for condos. What is being expanded?
       
    • AugustaGator

      AugustaGator Junior Member
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      The number of loans by lower qualification standards
       
    • Spurdog98

      Spurdog98 Well-Known Member

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      "Some men, you just can't reach"
       
    • NVGator

      NVGator Member
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      I couldn’t read it either but it’s my understanding they are lowering the requirement of percentage owned by owner occupancy. That’s a good thing and needed as affordability decreases.
       
    • AugustaGator

      AugustaGator Junior Member
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      So are you signing up to guarantee these lower qualified loans?
       
      • NVGator

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        I’m not sure what your concern here is. FHA loans have been around, nothing new. They’ve always supported the lower income, lower credit score person.

        Did you know there’s conventional loans as low as 3% now? USDA loans at 0% fully guaranteed? VA 0% fully guaranteed?
         
      • sminings

        sminings Well-Known Member

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        Not to repeat myself but what specifically are they lowering? FHA has been provided financing options since 1934. They have always targeted customers who dont qualify for a coventional mortgage.
         
      • NVGator

        NVGator Member
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        I thought I answered that above.
         
      • Concrete Helmet

        Concrete Helmet Hook, Line, and Sinker
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        no, no and hell no.....doomed to repeat the same mistake as Pelosi and Reid in 2004-2008. If people don't learn to save money before buying a house they sure as hell won't do it afterward. But they'll make good investments for me when they go in foreclosure 3 to 5 years from now and the banks are dumping them for 40K.....
         
      • rogdochar

        rogdochar Senior Member
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        Enables the MSM headlines:
        "Family to lose condo home because children being separated from "Dad" during his prison stretch."
         
      • NOLAGATOR

        NOLAGATOR Deep Behind Enemy Lines

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        The issues with Condos are the maintenance fees...especially if not fully occupied.

        I'd like to see more smaller homes with reasonable mortgages pushed.

        FHA mortgages of 25% of your income.
         
      • Gatordiddy

        Gatordiddy Well-Known Member
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        My daughter and her husband- ?

        They’re first time buyers but have struggled in the past to make ends meet. They’ve finally turned the corner but are playing catch up. This might help them
         
      • NVGator

        NVGator Member
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        They need a Realtor?
         
      • Gatordiddy

        Gatordiddy Well-Known Member
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        Unfortunately they do not or I would call you
         
        • Gatormb

          Gatormb Well-Known Member

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          FHA is not a subprime loan. Applicants must qualify credit and income. Yes they stretch the ratios some, but not a lot. What FHA is going back to is what they call "Spot" (individual) loans without going through the process of an entire project approval which is very costly and time consuming especially for doing and individual or just a few loans. It can take up to six weeks and cost $1,500 and be rejected for something as simple as a "right of first clause" which can be corrected but Associations will not go through the time and expense to change by-laws for an individual borrower.

          Here's what I found:

          The Federal Housing Administration has finally issued a long-awaited update to its condominium rules, announcing Wednesday that it will now allow individual unit approval and is taking other steps that will eliminate barriers for condo owners who want to take out a reverse mortgage.

          Under the revised guidelines – which take effect Oct. 15, 2019 – an individual condo unit in a building of 10 units or more may be eligible for spot approval if no more than 10% of the units are FHA-insured. For units in buildings with fewer than 10 units, no more than two units can have FHA insurance.


          The agency also loosened restrictions on owner-occupancy rules, stating that eligible condo projects can now be just 50% owner-occupied. And, it extended the recertification deadline for approved condo projects from two to three years.

          Finally, the agency said the new rules will allow financing for more mixed-use projects, stating that approved projects can now have up to 35% of their square footage dedicated to non-residential use.

          In all, the revised rule will drastically enhance a condo owner’s access to HECM financing, which has been limited since FHA did away with its spot approval process several years ago.
           
        • Concrete Helmet

          Concrete Helmet Hook, Line, and Sinker
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          I'll "spot" me about a dozen of these default condo's in 3 to 5 years for less than half what they were purchased for....
          People have the idea that the only homes that were short saled or foreclosed(REO) on were middle income properties where someone bit off more that they could chew and lost their job or something....wrong my REO and shortsale files from 2009-2014 show that "low income" starter properties made up the majority(most were in title less than 4 years) ....but hey as long as the government thinks everyone needs an education AND is responsible enough to own property despite not being able or willing to save 10-20 grand then I guess it's a mortgage brokers dream....and the government will bail the banks out again.
           
        • Swamp Donkey

          Swamp Donkey Come get Papa Bear!!!!
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          what if I told you less money chasing the real estate it would make the price of the real estate drop, and that pumping government money into the real estate will in fact make it increasingly more unaffordable.
           
        • Concrete Helmet

          Concrete Helmet Hook, Line, and Sinker
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          Why not mortgage them until they can get a conventional ? We've done it with both my Stepdaughter and my Stepson.
           

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