FHA Book

Miller Addresses WSJ Articles

FHA expert Peter G. Miller offers his analysis of the WSJ’s recent features about FHA Loans. Specifically he addresses a critical aspect that the Wall Street Journal has omitted from its series:

This is great stuff but it never quite gets to an important point: There was no FHA mortgage meltdown.

Fewer FHA loans, yes — after all, how could the staid, old-fashioned FHA program compete with mortgages which required nothing down and little meaningful financial disclosure.

But an FHA meltdown? Didn’t happen.

By sticking to its standards, the FHA has been an oasis of financial sanity.

Miller’s FHA insights tend to be spot on and this is no exception. Maybe the WSJ will take note and add an article on this topic to their growing archive.

WSJ Graph Analysis on DPA Defaults

Markham Lee over at SeekingAlpha.com takes a look at the WSJ’s graphs in their article about the problems with DPAs, which I wrote about the other day. Lee is not totally opposed to DPAs but stresses that down payment assistance should only be used to support “financially stable home ownership.” His analysis:

To be clear, I’m not against the program, provided it’s putting people into a strong, stable financial situation, and if the default rates are only slightly higher than those for regular FHA loans. The key is to set higher standards and aim to help people get ahead financially, instead of having them fiscally limp into home ownership. For example: instead of providing down payment assistance for people who can barely afford to make ends meet, provide it for those who will have enough savings for 3-6 months expenses (after they buy the house) if they receive help with the down payment.

Although I’m against DPAs, I don’t think they will be completely eliminated. I do think that if the powers-that-be take Lee’s attitude towards reforming down payment assistance they could serve their intended purpose and get deserving individuals in homes.

Foreclosure Advice on CNN

Tonight’s episode of Larry King Live will feature experts offering advice for Americans facing foreclosure. I’m willing to bet that there will be FHA talk - at least there better be!

The episode will be airing at 9 ET.

Seattle Day

The Seattle P-I has always been a great source for FHA-related articles and the paper’s diligent coverage seems to be spreading to the locals. Seattle real estate professional Samuel Hilbert addresses the growing number of FHA Loans being used in the Seattle area. There is a great photo on his site, AgentSamuel.com, that shows signs advertising FHA & VA Financing for local communities. His site features lots of other excellent information on Seattle real estate, and real estate in general. I recommend checking it out!

The Many Benefits of FHA

Although I primarily write about the standard FHA Home Loan, the FHA has a number of programs for helping out homeowners. One that I haven’t mentioned in awhile is the Reverse Mortgage. An article in yesterday’s Seattle P-I talked about the benefits of reverse mortgages and who they benefit most. Plus, the article details new changes that may allow more seniors to take out reverse mortgages:

Pending legislation may spur more senior homeowners to consider reverse mortgages. Those who have enough equity in their homes can qualify for loans of as much as $362,790 backed by the Federal Housing Administration. A housing bill in Congress includes a proposal to raise the payout to as much as $550,000 and eliminate the current limit of 275,000 reverse mortgages that the Department of Housing and Urban Development can insure.

As with any loan product, reverse mortgages aren’t for everyone; but if the circumstances are right, an FHA Reverse Mortgage could be a great choice for many Americans.

FHA Loans on the Upshot in DC

The Washington Post had an article the other day about the rise of FHA Loans in the DC area and across the country. It’s a great piece that covers the many benefits of FHA Loans that include:

Lower down payment than conventional loans

Allowance of a non-occupant co-signer

No prepayment penalties

It’s a great article with the personal stories of borrowers have been helped. One particularly interesting (and encouraging) tidbit is that FHA Loans were up 126% for the first quarter from last year.

What I Like to Hear

There is a great post over on the Utah Home Experts’ Blog about why FHA Loans are great not only for first time home buyers, but for ALL buyers as well. The post also examines why selling a home to an FHA financed borrower can be a great benefit, especially because FHA home restrictions are looser than they once were.

The post also addressess a misconception about FHA Loans:

There is a misconception among many buyers that once they have had a FHA loan they can no longer apply for one again. There is no restriction for the number of FHA loans that one buyer may have so long as they only have one at a time and they have not had a foreclosure that caused a loss to FHA.

Check it out!

Learn More About HR 1852

Wondering exactly what the passage of HR 1852 means for the FHA and borrowers? Head over to Peter Miller’s FHA Mortgage Guide to learn the specifics. Peter has laid out all of the changes and what they mean in an easy to read format. Check it out!

FHA Secure Getting Great Reviews

Check out the post on RealTown.com that gives snippets of what all of the big outlets and commentators are saying about FHA Secure. The feedback is good!

Southern Comfort

Here is a spot on analysis of a New York Times story about Countrywide Financial’s widespread problems. Not only does it effectively provide readers with the best summary of the article, there’s clever commentary to boot. That’s my kind of blogging!