FHA Home Loans Refinancing

3 Common Concerns for FHA Mortgage Loan Programs in the Future


As thousands of mortgage lenders close out the year, many loan professionals have questions in regards to FHA home loan programs in the year to come. Here are some common questions we are getting:

1. Will FHA continue to increase the insurance premium on FHA loans? They do this to off-set the defaults and to help raise the level of the reserves, but it many cases the benefits of low interest rates are lost because of the higher mortgage insurance premiums that FHA requires monthly.

2. Will Congress mandate higher down payment requirements on FHA loans for first time buyers? Many loan officers are fearful that FHA will require a 5% down payment rather than a 3.5% down payment.

3. Will HUD increase the minimum credit score requirement on FHA mortgages? Right now people still have a chance of qualifying for a bad credit home mortgage loan if they have at least a 500 fico score. Most FHA approved lenders have imposed their own minimum credit score requirements. 580 and 620 seem to be common bench marks for many companies originate FHA home mortgages.

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