Friday, June 4, 2010

Thankfully We Have FHA Financing Available!

As we look at the landscape of what is available in the market place for mortgage financing, it becomes clear that consumers need a low or lower down payment option when purchasing a home.  As I look back on my mortgage career, I now understand after hearing about this survey outlined below, as to why so many of my clients need FHA financing

The National Foundation for Credit Counciling has conducted a survey and found that 1/2 of Americans don't believe they would ever have 20% saved for a down payment for a home purchase.  If they can't scrape together a 20% down payment and the Conventional Loan Private Mortgage Insurance companies are tightening their underwriting standards monthly, where are 50% of American's going to go to get mortgage financing?

What is also obvious (thinking on what is on the other side of the coin) from this study is that 50% of Americans are okay with a 20% down payment?  Not at all, read on...

Here's what the rest of the survey tells us about what the other 50% of Americans are thinking (50% say they will never have a 20% down saved and here is what the other 50% say): 
  • 12% say 20% down is okay (Conventional loan works good here-one caveat is that credit scores need to be really quite good/great to get reasonable/best rates available)
  • 20% need a smaller down (FHA loan to the rescue!)
  • 18% need a gift (Again, FHA accomodates this need!)
In the end, if we had only conventional loans available, MAYBE 20% of the population would be taken care of  in their search for mortgage financing.  Thankfully we have FHA financing available to take care of the other 80% of buyer's and borrower's who need excellent mortgage financing options.

I have always been an FHA lender in my mortgage career and 75% of the over 3000 closed loans since 1991 have been FHA loans!

I look forward to providing professional mortgage services to those needing help with mortgage questions or needs! 

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