FHA Gets Tougher on Mortgages

[Joseph Burkeson, CMI]

Heads up, this can't be good for the inspection profession.


FHA Gets Tougher on Mortgages

Consumers looking for home loans backed by the Federal Housing Administration will face tougher hurdles and higher costs under new legislation and new rules that could take effect as soon as this month.

Higher monthly fees, larger down payments and better credit scores are among the new initiatives intended to ensure that the FHA stays solvent. Its reserves, which are used to cover bad loans, plummeted to $3.5 billion at midyear from $19.3 billion in September 2008, according to a report from the FHA's parent, the Department of Housing and Urban Development.

Excerpt: http://online.wsj.com/article/SB1000...LEFTTopStories

[Brian K. Smith]

there inspectiors have been calling out everything and now add more gas to the fire...

[Paul Pendley]

Not to mention that homes flipped within a 90 day period are required to be inspected depending on the percentage of purchase/resale.

[Brian K. Smith]

I do know in the last month I have had like 5 hi that the buyers loan/bank has come back and requested a HI...COOL DEAL! I like it! another one on tues!

[wnapier]

Geeze - I thought FHA was designed to be an easier way for new buyers to get into their first home??!!!??

Lower down payments, easier credit requirements, more liberal income qualifications...What happened to all that?

Al (used to do a lot of FHA deals once upon a time) in TN

[wsiegel]

They have become control freaks, and it will only get worse.