Hal's Mortgage Blog

New legislation passed a few days ago regarding FHA loans appears to eliminate DPA after October 1, 2008. The bill is over 600 pages so it bears some closer scrutiny - it is unclear regarding whether or not Tribal Nations will be exempt.

There is good news! First Time Homebuyers who buy starting this year will receive a $7500 tax credit. This may offset the loss of DPA.

FHA continues to be one the best remaining loan programs available for buyers with a low down payment or less than perfect credit.

What's going to happen to the Mortgage Industry? With Fannie and Freddie in the news daily, many are concerned about how it might affect them.

It appears that the Fed will not let either GSE fail, however there will be stricter guidelines regarding what loans are acceptable. Since last year, both agencies have eliminated 100% (zero down) loans. The remaining products are more difficult to qualify for, have higher interest rates and higher Private Mortgage Insurance rates. PMI insures the lender against default

Help! The sky is falling! Not really since another Federal Agency has stepped in to take up the slack. FHA is back, stronger than ever. I don't have space here, but call or email me and I'll share the advantages to you, the borrower, of FHA loans.