FHA Mortgage Guide

Loretta asks if she can “get an FHA loan direct from government without a mortgage broker if so how?”

The answer is no, but the idea of the getting FHA mortgages directly from the government is not a thought which is outside the realm of possibility.

The current system is set up to assure employment in the private sector, and that’s a generally good idea for reasons of efficiency, marketplace competition and our national preference for enlightened capitalism. That said, having the government handle loan applications is not implausible.

The FHA, as an example, could field career loan officers and processors in every state. The cost of “selling” mortgages would disappear because there would only be one source. Mortgage rates would be the same nationwide, each day. Investors would know that each originated loan went through the exact same underwriting process.

Could such a program evolve? Not likely, but troubles and tremors in the private mortgage marketplace open the door to federal intervention — not that any federal department would ever want to expand its power, authority or turf…. Right?

Check out these FHA resources for more information

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