June 13, 2024

Archives for June 2011

Banks Exit FHA Reverse Mortgage Program As Defaults And Losses Skyrocket

The FHA’s reverse mortgage program, known as the Home Equity Conversion Program, (HECM) has been very popular with retired borrowers.  The program allows homeowners 62 years of age or older to withdraw some of the equity from their homes without having to make a mortgage payment.  The money obtained under the HECM can be in […]

FHA Lending Plunges By 39% Through May As Default Rate Exceeds 8%

The recently released Single-Family Outlook from the FHA shows a steep drop in FHA applications through May 2011.  According to the FHA the estimated rate of annual applications plunged by 39% from a year ago and down 21% from April.  The FHA estimates that total applications for mortgage loans this year will be 1.3 million. […]

The End of the FHA? Early August Shutdown Looms For FHA Program

Congress has until August 2, 2011 to resolve the debate over increasing the federal debt ceiling.  A failure to increase the debt ceiling would result in the shutdown of nonessential government services. No one expects that social security checks or paychecks to the military and other essential personnel  will stop being issued but a raft […]

Realtors Ask For Less Restrictions on FHA Condo Financing

Many first time home buyers view the purchase of a condominium as their best option.  Condos are frequently priced below single family homes and can be an attractive choice for a home owner who does not want to be directly involved in tedious and time consuming maintenance and repairs. Although the FHA mortgage program for […]

FHA Mortgage Insurance Compared To Private Mortgage Insurance (PMI)

FHA financing remains the only mortgage option available to many borrowers able to make only a minimal down payment for a new home.  Offsetting this advantage, however, is the high cost of FHA mortgage insurance . Due to a large number of loan defaults, the FHA was recently forced to raise monthly mortgage insurance premiums […]