h1

FHA to the Rescue!

August 31, 2007

by Linda Hutchinson

President Bush is set to unveil a proposal today that will rescue select homeowners around the country with risky “sub-prime” adjustable rate mortgages who otherwise might their homes to foreclosure. According to the Florida Association of Realtors, the Federal Housing Administration will insure new loans for up to 80,000 homeowners who previously paid their loans on time and have a minimum of 3% equity in their home.There are too many foreclosures, pre-foreclosures, and short sales on the market in Central Florida already. These three types of listings tend to have a detrimental effect on the market as they drive down price expectations for buyers, flood the market with houses owned by unmotivated sellers, and lower the market price of otherwise desirable properties. This proposal promises to keep up to 80,000 homeowners in their homes by allowing them to refinance at a lower rate, which is good news for Realtors and homeowners, and great news for the real estate market!

Advertisements

2 comments

  1. I’m assuming this money will NOT be available to people looking to refinance on investment properties with an ARM – can you confirm?


  2. Matt: You are correct. FHA is geared toward the buyer who is credit worthy (doesn’t have to be perfect) and who is NOT an investor. FHA is for owner occupied only. There are however options available to investors and you can call me if you want more information.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: