This is Not Your Father's FHA

NAR hears the concerns Realtors have about FHA loans - either they are either too cumbersome to process or that the higher loan limits aren't needed in their particular market.

The new reality is that FHA modernization, in addition to increased FHA loan limits, is designed to help Realtors do what they do best- put people into homes.

Consider that:

100% financing options are becoming a thing of the past, and FHA is becoming a major player for people buying a home or refinancing an existing one.


The homebuyer tax credit will attract active purchasers to the market and help stabilize housing prices.


It is projected that the FHA marketshare of new home loans will increase fivefold between 2007 and 2009.


Many Realtors are stuck thinking of the FHA of old - but FHA has streamlined its application process, and eliminated the requirement for a separate inspection. If you use a qualified FHA lender, processing an FHA loan is comparable to a conventional loan.


Even if your community is not a high cost area, raising the FHA and GSE loan limits will provide liquidity in the market and make mortgage money more available and affordable to borrowers nationwide.
This is Not Your Father's FHA. Throw in the new provision for tax credits and it is obvious that Realtor support for this bill is a no brainer. The Housing Stimulus bill being debated now includes FHA modernization.

Please call me if you are looking for FHA lenders: I know few who do fast FHA and Utah Housing loans.