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FHA Versus Conventional Mortgages

by Peter G. Miller
September 10th, 2007

Did you ever think about the differences between FHA loans and conventional financing?

Let’s look at what the conventional market has offered in the past few years. There have been interest-only loans and option ARMs. There have been stated income loan applications and mortgages where you don’t need to show any income.

No doubt about it, conventional loans have been offering a bunch of features and options that are simply not available through the FHA program.

But if you think about it, what loans are now in disfavor? Have you recently tried to get a no doc loan or to use a stated-income mortgage application? Anyone happy about the rate re-sets associated with interest-only or option ARMs?

The FHA expects that more than 100,000 people will refinance this year, moving from “nontraditional” loans to straight-forward, boring and understandable FHA loans. How many people will move from FHA financing to toxic loans in the private sector?

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This entry was posted on Monday, September 10th, 2007 at 9:14 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.

One Response to “FHA Versus Conventional Mortgages”

  1. Jeff Says:

    I just do not understand how jobs will be developed when a large number of United States companies are investing their money overseas. Take GE for instance. GE’s recent project to build aircraft engines for the Chinese will lead to them passing over their blueprints for their engines. Yet another corporation, Yum Brands, is getting over 60% of their profits from outside America. Unless trade policies are altered, the downward spiral in jobs is unavoidable.

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