FHA limit increases

[NotCranky]

“Don’t really see the problem here. What they should also do is attach an inflation rider to the limits that should be reset yearly rather than having to review these during crisis situations.”

I see it differently. They are paving the way to make sure inflation doesn’t stay in the pocket of homedebtors but makes it back up the food chain to to the people who inflated the bubble in the first place. This is all part of the engineered “softer” landing. That ship that is big and hard to turn around. They are working on it.

[kev374]

http://money.cnn.com/2007/12/14/real_estate/congress_mortgage.ap/index.htm?postversion=2007121416

of particular interest:

The Senate bill would also lower the FHA down payment requirement from 3 percent to 1.5 percent,

and

The House would raise the maximum mortgage to $729,750 in high-cost areas

Anyone who the exact income and assets qualifications for FHA loans? If a buyer opts for 1.5% down loan what kind of debt/income ratios are they going to use? Are they going to verify income so that buyers can’t game the system like they have been doing so far?

[kev374]

http://money.cnn.com/2007/12/14/real_estate/congress_mortgage.ap/index.htm?postversion=2007121416

of particular interest:

The Senate bill would also lower the FHA down payment requirement from 3 percent to 1.5 percent,

and

The House would raise the maximum mortgage to $729,750 in high-cost areas

Anyone who the exact income and assets qualifications for FHA loans? If a buyer opts for 1.5% down loan what kind of debt/income ratios are they going to use? Are they going to verify income so that buyers can’t game the system like they have been doing so far?

[kev374]

http://money.cnn.com/2007/12/14/real_estate/congress_mortgage.ap/index.htm?postversion=2007121416

of particular interest:

The Senate bill would also lower the FHA down payment requirement from 3 percent to 1.5 percent,

and

The House would raise the maximum mortgage to $729,750 in high-cost areas

Anyone who the exact income and assets qualifications for FHA loans? If a buyer opts for 1.5% down loan what kind of debt/income ratios are they going to use? Are they going to verify income so that buyers can’t game the system like they have been doing so far?

[kev374]

http://money.cnn.com/2007/12/14/real_estate/congress_mortgage.ap/index.htm?postversion=2007121416

of particular interest:

The Senate bill would also lower the FHA down payment requirement from 3 percent to 1.5 percent,

and

The House would raise the maximum mortgage to $729,750 in high-cost areas

Anyone who the exact income and assets qualifications for FHA loans? If a buyer opts for 1.5% down loan what kind of debt/income ratios are they going to use? Are they going to verify income so that buyers can’t game the system like they have been doing so far?

[kev374]

http://money.cnn.com/2007/12/14/real_estate/congress_mortgage.ap/index.htm?postversion=2007121416

of particular interest:

The Senate bill would also lower the FHA down payment requirement from 3 percent to 1.5 percent,

and

The House would raise the maximum mortgage to $729,750 in high-cost areas

Anyone who the exact income and assets qualifications for FHA loans? If a buyer opts for 1.5% down loan what kind of debt/income ratios are they going to use? Are they going to verify income so that buyers can’t game the system like they have been doing so far?

[temeculaguy]

Has anyone else here had an FHA loan. I had one long ago and perhaps things have changed but I remember it was expensive and difficult to get. The interest rate was slightly higher than the market, the PMI had to be paid in a lump sum and then financed so it never really went away and they were very strict about qualifications, including making the builder jump through hoops at stages during construction. When I sold that house my realtor had a printout advising me that if I sold to an FHA buyer I would net a few thousand less than if sold to a conventional buyer so we would need to accept a higher offer it the buyer had an FHA loan to reach my goal for net proceeds. I still don’t remember why I used them but I think it was because they were liberal about me being young and having such a short credit and employment history, I can’t remember because my adult ADD is acting up but I was about two weeks out of college when I bought my first house and they were the lender of last resort. Ahh, college kids buying houses right out of school and not defaulting on the loan, the good ole days were actually….good.

[temeculaguy]

Has anyone else here had an FHA loan. I had one long ago and perhaps things have changed but I remember it was expensive and difficult to get. The interest rate was slightly higher than the market, the PMI had to be paid in a lump sum and then financed so it never really went away and they were very strict about qualifications, including making the builder jump through hoops at stages during construction. When I sold that house my realtor had a printout advising me that if I sold to an FHA buyer I would net a few thousand less than if sold to a conventional buyer so we would need to accept a higher offer it the buyer had an FHA loan to reach my goal for net proceeds. I still don’t remember why I used them but I think it was because they were liberal about me being young and having such a short credit and employment history, I can’t remember because my adult ADD is acting up but I was about two weeks out of college when I bought my first house and they were the lender of last resort. Ahh, college kids buying houses right out of school and not defaulting on the loan, the good ole days were actually….good.

[temeculaguy]

Has anyone else here had an FHA loan. I had one long ago and perhaps things have changed but I remember it was expensive and difficult to get. The interest rate was slightly higher than the market, the PMI had to be paid in a lump sum and then financed so it never really went away and they were very strict about qualifications, including making the builder jump through hoops at stages during construction. When I sold that house my realtor had a printout advising me that if I sold to an FHA buyer I would net a few thousand less than if sold to a conventional buyer so we would need to accept a higher offer it the buyer had an FHA loan to reach my goal for net proceeds. I still don’t remember why I used them but I think it was because they were liberal about me being young and having such a short credit and employment history, I can’t remember because my adult ADD is acting up but I was about two weeks out of college when I bought my first house and they were the lender of last resort. Ahh, college kids buying houses right out of school and not defaulting on the loan, the good ole days were actually….good.

[temeculaguy]

Has anyone else here had an FHA loan. I had one long ago and perhaps things have changed but I remember it was expensive and difficult to get. The interest rate was slightly higher than the market, the PMI had to be paid in a lump sum and then financed so it never really went away and they were very strict about qualifications, including making the builder jump through hoops at stages during construction. When I sold that house my realtor had a printout advising me that if I sold to an FHA buyer I would net a few thousand less than if sold to a conventional buyer so we would need to accept a higher offer it the buyer had an FHA loan to reach my goal for net proceeds. I still don’t remember why I used them but I think it was because they were liberal about me being young and having such a short credit and employment history, I can’t remember because my adult ADD is acting up but I was about two weeks out of college when I bought my first house and they were the lender of last resort. Ahh, college kids buying houses right out of school and not defaulting on the loan, the good ole days were actually….good.

[temeculaguy]

Has anyone else here had an FHA loan. I had one long ago and perhaps things have changed but I remember it was expensive and difficult to get. The interest rate was slightly higher than the market, the PMI had to be paid in a lump sum and then financed so it never really went away and they were very strict about qualifications, including making the builder jump through hoops at stages during construction. When I sold that house my realtor had a printout advising me that if I sold to an FHA buyer I would net a few thousand less than if sold to a conventional buyer so we would need to accept a higher offer it the buyer had an FHA loan to reach my goal for net proceeds. I still don’t remember why I used them but I think it was because they were liberal about me being young and having such a short credit and employment history, I can’t remember because my adult ADD is acting up but I was about two weeks out of college when I bought my first house and they were the lender of last resort. Ahh, college kids buying houses right out of school and not defaulting on the loan, the good ole days were actually….good.

[NotCranky]

I had an FHA loan because that is what the broker got me :).
Also many moons ago. I had a 5.85 fixed rate because BOA had been Redlining the ghetto I bought in and was forced to give a discount. An FHA inspector gave some superficial look at it. I fixed a few things for him because it was a REPO and no one else was going to do it.I was repairing it while it was still in escrow the appraiser came and I told him it was worth 20% more than I paid for it so I didn’t pay PMI. I moved in and was paying about 60% of market rent. Yes those were the good old days TG. Sold that house for a decent profit to an FHA buyer but told the buyers agent to increase the offer for the added expenses. The house quadrupled in the 8 years after I sold it. Made very nice house cleaning lady relatively wealthy though, so that was good.

[NotCranky]

I had an FHA loan because that is what the broker got me :).
Also many moons ago. I had a 5.85 fixed rate because BOA had been Redlining the ghetto I bought in and was forced to give a discount. An FHA inspector gave some superficial look at it. I fixed a few things for him because it was a REPO and no one else was going to do it.I was repairing it while it was still in escrow the appraiser came and I told him it was worth 20% more than I paid for it so I didn’t pay PMI. I moved in and was paying about 60% of market rent. Yes those were the good old days TG. Sold that house for a decent profit to an FHA buyer but told the buyers agent to increase the offer for the added expenses. The house quadrupled in the 8 years after I sold it. Made very nice house cleaning lady relatively wealthy though, so that was good.

[NotCranky]

I had an FHA loan because that is what the broker got me :).
Also many moons ago. I had a 5.85 fixed rate because BOA had been Redlining the ghetto I bought in and was forced to give a discount. An FHA inspector gave some superficial look at it. I fixed a few things for him because it was a REPO and no one else was going to do it.I was repairing it while it was still in escrow the appraiser came and I told him it was worth 20% more than I paid for it so I didn’t pay PMI. I moved in and was paying about 60% of market rent. Yes those were the good old days TG. Sold that house for a decent profit to an FHA buyer but told the buyers agent to increase the offer for the added expenses. The house quadrupled in the 8 years after I sold it. Made very nice house cleaning lady relatively wealthy though, so that was good.

[NotCranky]

I had an FHA loan because that is what the broker got me :).
Also many moons ago. I had a 5.85 fixed rate because BOA had been Redlining the ghetto I bought in and was forced to give a discount. An FHA inspector gave some superficial look at it. I fixed a few things for him because it was a REPO and no one else was going to do it.I was repairing it while it was still in escrow the appraiser came and I told him it was worth 20% more than I paid for it so I didn’t pay PMI. I moved in and was paying about 60% of market rent. Yes those were the good old days TG. Sold that house for a decent profit to an FHA buyer but told the buyers agent to increase the offer for the added expenses. The house quadrupled in the 8 years after I sold it. Made very nice house cleaning lady relatively wealthy though, so that was good.

[Author]

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