The Federal Housing Administration (FHA) insured nearly one-third of mortgages in 2009. However, with the increasing number of loans in default, the FHA needs to lower its risk in the future and build up its reserve funds to meet the 2% ratio that Congress requires.
In other words…it will be more difficult to obtain a government-insured mortgage.
Here are some of the changes you can expect to see from the FHA:
- Increased premiums for mortgage insurance
- Increased down payment for those with weak credit scores
- Stricter enforcement of lenders
These changes might make things a little more difficult but certainly not impossible.
- Experts say the increased premiums for mortgage insurance will only bump up the mortgage payment slightly.
- The average homebuyer has a credit score around 693, which is above the required 580 to qualify for a 3.5% down payment.
- The FHA will seek legislative authority to require mortgage firms to assume liability for the loans they underwrite.
If you have multiple loans to finance your investment business, download our Mortgage Loan Record and use it to organize your business.
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