Comments on: Is 3.5% in Home Equity Too Risky for the FHA? http://www.fhaloanpros.com/2008/11/is-35-in-home-equity-too-risky-for-the-fha/ The Unofficial Guide to FHA Loans & Mortgages Sat, 21 Nov 2009 09:09:50 +0000 http://wordpress.org/?v=2.6 By: Heindrick So http://www.fhaloanpros.com/2008/11/is-35-in-home-equity-too-risky-for-the-fha/#comment-32932 Heindrick So Mon, 22 Dec 2008 17:54:44 +0000 http://www.fhaloanpros.com/?p=750#comment-32932 It realy depends on the actual FHA lender you are working with. I've heard of some lenders who've been requiring the 3.5% already, and some who will continue to fund so long as your case number was issued before Dec 31, 2008. Given the timeline, I'd say prepare for the worst case scenario and save an extra .5% for your down payment. It realy depends on the actual FHA lender you are working with. I’ve heard of some lenders who’ve been requiring the 3.5% already, and some who will continue to fund so long as your case number was issued before Dec 31, 2008. Given the timeline, I’d say prepare for the worst case scenario and save an extra .5% for your down payment.

]]> By: Dominick http://www.fhaloanpros.com/2008/11/is-35-in-home-equity-too-risky-for-the-fha/#comment-32396 Dominick Fri, 19 Dec 2008 05:06:50 +0000 http://www.fhaloanpros.com/?p=750#comment-32396 FHA Downpayment increases to 3.5% after Jan 1, what if you ratified in December 08, but don't close till 1/12/09, would you still qualify for the 3% down payment??? FHA Downpayment increases to 3.5% after Jan 1, what if you ratified in December 08, but don’t close till 1/12/09, would you still qualify for the 3% down payment???

]]> By: Carl Pruitt http://www.fhaloanpros.com/2008/11/is-35-in-home-equity-too-risky-for-the-fha/#comment-30329 Carl Pruitt Tue, 25 Nov 2008 01:13:52 +0000 http://www.fhaloanpros.com/?p=750#comment-30329 Heindrick, Thanks for highlighting that big difference between FHA and subprime. I am so sick of hearing FHA referred to as the new subprime. Subprime never seemed to apply common sense to the underwriting process. They just wanted the borrower to fit their matix regardless of the reasons for the credit problems or whether they had resolved. As to the down payment I originated as many loans as I could handle when borrowers had to put down just under 5%. 3.5% should present no problem to buyers or loan officers once they adjust to it. The next step for FHA, I believe, is to get more staff into their lender approval and compliance divisions to prevent the crooks from taking advantage of the FHA system and ruining it. Thanks! Carl Pruitt Heindrick,

Thanks for highlighting that big difference between FHA and subprime. I am so sick of hearing FHA referred to as the new subprime.

Subprime never seemed to apply common sense to the underwriting process. They just wanted the borrower to fit their matix regardless of the reasons for the credit problems or whether they had resolved.

As to the down payment I originated as many loans as I could handle when borrowers had to put down just under 5%. 3.5% should present no problem to buyers or loan officers once they adjust to it.

The next step for FHA, I believe, is to get more staff into their lender approval and compliance divisions to prevent the crooks from taking advantage of the FHA system and ruining it.

Thanks!
Carl Pruitt

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