FHA CHANGES

Again we are finding out that no matter what fico score we have, it is still a challenge to obtain credit.  Now please don’t be alarmed – let’s just say the process is a bit more lengthy if you are applying for a home loan or credit.  It is beginning to look like our financial system is failing consumers time and time again.  No matter how hard we work and save to make a difference to support our families, there are new restrictions and obstacles.  Since the mortgage melt down, consumers have experienced let-downs and a crumbling economy.  The Federal Home Administration (FHA) even began tightening their guidelines.  This entity is the fairest entity when it comes to obtaining a home loan. FHA’s loan-to-value was set at 97% which is going to be changed to 96.5%.  What this means is the consumer’s down payment will be 3.5% instead of 3%.  .05% may be looked upon as a small amount, but to many it is a lot.  To make matters worse, FHA allowed assistance programs to make up the back-end difference such as closing cost and additional assistance with the down payment.  Well I am sorry to inform you that those programs are on their way out the door beginning October 1, 2008.  This eliminates a vital program to help consumers who needs additional assistance in purchasing a home. 

 My question now is:  are we starting to witness only the “have’s” will benefit and the have not’s will end up with nothing?  I know some will disagree but in my opinion, everyone who works and is responsible deserves more. The subprime consumer did not create those creative finance programs.  All subprime consumers are not irresponsible so were does the finger pointing begin?  We’ll save that answer for later.

 In closing I want to say that our friends who sit on the Hill are all of sudden in retreat mode to protect their profits which was made before the collapse of our financial infrastructure.  My suggestion to you, the consumer, is to make sure you are doing your due diligence.  When speaking with your lender ask if there are any sudden guideline changes and requirements; this will save time and prevent potential frustration.  If any new assistance programs become available, I will post them and offer suggestions on how to apply.

http://www.fhamortgagecenter.com/pc/fha_requirements.html?src=adw&utm_source=Google&gclid=CO-Bn5vB95UCFQv7agodKSNN4Q