FHA Mortgage Guide

The first time I bought a home I financed with FHA financing. The broker told me how much cash I needed, I said great, and the deal was done.

The problem was I had no idea how FHA financing worked. Had the lender been something other than honest, they could have charged just about any rate and I would not have known any better.

Now there’s a new emphasis on counseling for first-time borrowers and I say great. Let’s tell borrowers how FHA loans work so they will not be surprised by insurance premiums and other costs. Let’s tell them the good news about prepayment penalties and the bad news about quirky pay-off requirements.

But why limit counseling to first-time borrowers? Most people only get a loan every eight to 10 years or so. Could not all borrowers benefit from a market update?

Sy Syms, the clothing retailer, used to say that an educated consumer was his best customer. Why shouldn’t that be true with lenders?

Just curious, that’s all.

Check out these FHA resources for more information

This entry was posted on Thursday, May 31st, 2007 at 6:53 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.