FHA On Solid Ground: Hope for Sayreville New Jersey Real Estate Owners
A recent interview with FHA commissioner David Stevens on
Instead of immediate risk management in the form of strict guidelines that might make it harder on potential Sayreville New Jersey real estate owners, such as those Fannie Mae and Freddie Mac have put on condo mortgages, the FHA is going for some changes. The changes include hiring a chief risk officer and requiring higher capital standards for loan originators.
Once it was out that the FHA wouldn’t meet its 2% (please note that the FHA itself is the one who broke the news), news portals, blogs and other websites spread the news that the FHA was a train wreck. However, the
It appears that the FHA, put in place for instances like this when people can’t afford other loans, actually has two capital accounts. According to Stevens, the FHA has “lots of capital in primary reserve to cover expected defaults.” Combined, FHA capital is over $30 billion dollars.
At the present, says Stevens, the FHA isn’t considering a minimum credit score, and they may not have to. Looking at their portfolio, the average credit score has gone up 60 points, from 630 to 690, pointing to a higher quality of borrowers.
So, when thinking about buying Sayreville New Jersey real estate and looking at mortgage companies, don’t forget to look at the FHA. If Fannie Mae and Freddie Mac are lending, the FHA is – and it’s going strong!
You can watch the
If you’re looking for a beautiful home, I can help. Call me now at 732-247-1935 ext 182 or email me at freddie@freddiemoorer.com for more information.
Links:
Might not make its 2% capital reserve
FHA
http://www.hud.gov/offices/hsg/fhahistory.cfm
http://www.cnbc.com/id/15840232?video=1274114504&play=1