FHA Reform

Is FHA really the answer for the mortgage crisis? This morning I participated in a conference call regarding the FHA Secure Program that George W. Bush unveiled in hopes of helping so many home owners that could lose their homes. Frankly, after reviewing the program I don't think it is quite enough. It is designed for borrowers who have made 6 months payments on time before their ARM made an adjustment. The problem is these people still need to qualify with a total debt ratio under 43%, unless there are compensating factors such as assets, good job history, and of course whatever else the underwriter deems necessary. Initial estimates are that it could help 80k home owners, and for the time being, sure.
I do believe FHA streamline refinances, cash-out refinances, and rehab loans are the best FHA products. Not to mention the FHA purchase combined with a down payment assistance program still enables a borrower to finance their home with no money out-of-pocket. So, without a doubt, you will see more and more FHA loans being originated, and more and more loans being refinanced into FHA loans.
The next step for borrowers is to find a lender that can meet their needs. I blog about www.correctlending.com all the time, because it is the greatest product created for the home owner. It matches a borrower with the type of loan that meets their specific needs, goals, and personality. As argued in previous blogs, we would not be experiences the credit crunch we are currently experiencing had lenders originated better loans, and borrowers had been better educated about the risks associated with mortgages. Use Correct Lending's Correct Loan Analyzer for yourself, its free, and guaranteed to help the borrower make the correct loan decision, and get that loan at the lowest possible price.