Private Sale Partners Blog » FHA http://www.privatesalepartners.com/blog Private Sale Partners, FSBO Real Estate Blog Sat, 02 Apr 2011 13:43:42 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Is Credit Loosening? http://www.privatesalepartners.com/blog/2009/10/27/is-credit-loosening/ http://www.privatesalepartners.com/blog/2009/10/27/is-credit-loosening/#comments Tue, 27 Oct 2009 18:37:49 +0000 jeffrey.britz http://www.privatesalepartners.com/blog/?p=132 Although mortgage rates are at or near historic lows, the difficulty in obtaining a mortgage has made buying a home quite difficult for many families. As it often does, the pendulum has swung too far in the opposite direction. The existence of no documentation mortgages just a few years ago has led to default and foreclosure rates not seen since the Great Depression. Banks, along with Fannie Mae and Freddie Mac (both now government owned), have experienced great losses and have now significantly tightened their policies as a result. New restrictions on Fannie Mae and Freddie Mac mortgages have made obtaining mortgages from them much more difficult.

Fortunately there is one major exception. FHA mortgages are still readily available and at or near historically low rates. These loans require full documentation of both income and assets, but if a borrower has a good credit history and a steady income, qualifying for an FHA mortgage is without question the way to go. Those looking to  buy a home should contact a competent mortgage banker who is authorized to offer FHA mortgages. They only get paid if a borrower secures a loan, so it is in their interest to do everything possible to make sure that loans close and that borrowers receives their loans. Choose the right mortgage banker, and they will surely act as your advocate through the entire mortgage process.

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