It’s even tougher than ever to get a 3.5% FHA loan. You are more likely to fall into the traditional 10% down.. To get the lower downpayment your fico would have had to be 701 on average.
Aren’t we lucky to have such status. The article talks bout 4 kinds of mortgage fraud.
1. Property value fraud where values are inflated. Huh! I don’t see this happening in L.A. are all. In fact just the opposite. Appraisers are frequently under valuatin.
The Case Shiller index of home prices in 20 cities rose 3.0% from last year and up .3% since last month.
Phoenix was up an amazing 20% from last year.
Can you dispute that the housing recovery has taken hold? This is surely the time to get started. Don’t wait until the market is at the top. That is scary stuff. Make your New Year’s resolution to finally take action.
Sales for first time homebuyers are going down. It’s really difficult for these folks. FHA does 50% of these loans and their underwriting requirments are so strict that few can get appoved. In addition, the csosts for FHA loans are increasing which is also pulling some people out of the game.
Because they insured the banks against loss if the loans went bad, they had to pay off a lot of money. Like any insurance company, if you have to pay out more than you collected in insurance premiums, you are in trouble.