Sandi you are right, that article was complete crap on the part of the writer. You are right, 417 is the gse magic number, FHA varies and S.D. is 363k. It also said it would authorize up to 300 million, great, that will be less than 500 houses.
This is all political speak and won’t help anyone, Lending bubble is right, you need 180k fully doccumented and guaranteed income to pull that 700k from FHA and that is not who needs the help nor will those people go FHA. FHA rates are usually higher, require upfront mort insurance (MMI? or whatever they call it) they have the strictest of income ratios and the strictest regulations. From a buyer’s perspective I wouldn’t get an FHA loan unless it was my only option. The average problem scenario for those facing foreclosure are people who are facing a reset on a mortgage of 400k to 750k with 100k or less in income and they are upside down 5-20%, regardless if FHA is now allowed to loan them money those people won’t come close to qualifying. The people foreclosing are not short two or three hundred a month and their reset in many cases is only what the amortized rate should have been in the first place. Unless FHA decides to do stated, pay option, neg am, this is an 8 seat lifeboat for a whole cruise ship.
