Comments on: FHA Loans: Critics Fear Lending Standards Still Too Lenient http://www.fhaloanpros.com/2010/02/fha-loans-critics-fear-lending-standards-still-too-lenient/ The Unofficial Guide to FHA Loans & Mortgages Wed, 08 Sep 2010 12:30:28 +0000 http://wordpress.org/?v=2.6 By: Cameron http://www.fhaloanpros.com/2010/02/fha-loans-critics-fear-lending-standards-still-too-lenient/#comment-85675 Cameron Mon, 22 Feb 2010 21:43:03 +0000 http://www.fhaloanpros.com/?p=1919#comment-85675 There's a train stopping, and this spring the train will stop to a halt. FHA standards may be easier than conventional, however I don't know one lender who subscribes to FHA's minimum standards. I am mostly seeing lenders require a minimum of 640 credit score, 3.5% down payment, appraisal required (streamline option is GONE) and everything must be documented (income, bank accounts, etc.). Don't forget that borrowers pay 1.75% (soon will rise to 2.25%) for upfront mortgage insurance and .55% per month, which goes directly to FHA. The train will soon stop, and that train is the purchasing and refinancing market. It will stop, so are we setting up for a double dip recession? There’s a train stopping, and this spring the train will stop to a halt. FHA standards may be easier than conventional, however I don’t know one lender who subscribes to FHA’s minimum standards. I am mostly seeing lenders require a minimum of 640 credit score, 3.5% down payment, appraisal required (streamline option is GONE) and everything must be documented (income, bank accounts, etc.). Don’t forget that borrowers pay 1.75% (soon will rise to 2.25%) for upfront mortgage insurance and .55% per month, which goes directly to FHA.

The train will soon stop, and that train is the purchasing and refinancing market. It will stop, so are we setting up for a double dip recession?

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