Read the informative home finance articles posted by the editing team at FHA Home Loan Company. We publish new home loan articles weekly online.
FHA Mortgage Versus Subprime Loan
The one thing that subprime loans and FHA loans have in common is that both allow low credit scores. However, the subprime mortgage is pretty much a thing of the past now. A FHA mortgage is now about the only subprime home loan you can get. If you have credit problems, there is no way you can get a conforming Fannie Mae/Freddie Mac loan. And, now with the federal government taking over these two government-sponsored entities (GSEs), there is much speculation that just about all lending will clamp down until the feds can sort out the fall out.
US Government takes over Fannie Mae and Freddie Mac!
Reuters reports that the government's historic bailout of Fannie Mae and Freddie Mac on Sunday will be good news to homebuyers and some homeowners hoping to refinance if it leads to lower mortgage rates, as experts expect. Even though homeowners already behind on their mortgage payments or who are upside down on their loans will see little relief, it will help stabilize the mortgage industry.
HOPE for Homeowners Act
Under the HOPE for Homeowners Act, the Federal Housing Administration (FHA) has been granted additional authority to insure up to $300 billion of mortgages to refinance loans headed for foreclosure. The program is completely voluntary for lenders, investors, loan servicers, and borrowers. So, lenders are not required to give you a better deal under the new law, even if you do meet the qualifications. |
