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FHA Home Loan Refinancing posted an intriguing article today that shed some light on the challenges that HUD is facing with their FHA loan program that is insured by the US government. Let’s face it the housing market and mortgage industry has been in shambles nationwide over the last three or four years. Blaming FHA is not fair and certainly will not solve the problem. FHA mortgage lending has taken risks, but they have adapted to the lending obstacles and made changes that should mitigate the risks without compromising the FHA loan benefits for American consumers. First time homebuyers and existing homeowners both benefit from FHA home loans.
5 Concerns Noted by the FHA Home Loan Refinancing Company
1. FHA loan defaults have risen dramatically over the last 48 months.
2. FHA mortgage reserves have dropped to dangerously low levels.
3. FHA loan guidelines have tightened significantly and most FHA lenders require a 640 credit score to refinance.
4. The FHA requirements for FHA streamline programs programs thus fewer borrowers qualify.
5. The change in the appraisal policy for FHA refinance loans has slowed the process and increased the closing costs for borrowers.
Read the original article online, http://www.fhahomeloanrefinancing.com/blog/2010/03/18/are-low-rate-fha-refinance-loans-getting-better/.