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FHA Mortgage Loans Introduced to Stimulate Markets as Housing Recovery Faces Challenges

admin — Tue, 23 Jun 2009 14:46:10 +0000

A recent rise in mortgage rates and rising foreclosures and job losses are just a few of the challenges standing in the way of a lasting recovery, economists say. New FHA loan programs have helped struggling homeowners qualify for mortgage refinancing. In addition FHA announced new financing incentive for 1^st time homebuyers with attractive incentives to finance a new home. HUD created these new FHA mortgage lending programs in an effort to stimulate the real estate market that has been sluggish nationwide for several years. With the economy ailing, affordability remains the primary concerns for most Americans considering financing a home.

The US residential real estate market is caught in the worst correction in decades with few reasons to be optimistic as the economy worsens, according to a key housing report released Monday. “Despite unprecedented federal efforts to stimulate the economy and help homeowners make current mortgage payments, house prices continued to fall and home foreclosures continued to mount in most areas through the 1^st quarter of 2009,” according to the executive summary of the State of the Nation’s Housing annual report released by Harvard University’s Joint Center for Housing Studies. “While new and existing home sales and single-family starts have shown some signs of stabilizing, ongoing job losses, house price deflation and tighter mortgage underwriting and credit are placing any recovery at risk,” the report said.

“Although there are some signs of improvement or at least steadiness in new construction and sales, housing starts stand near 60-plus year lows, and any life in home sales is coming from distressed foreclosure sales, temporary 1^st -time buyer tax credits and low mortgage interest rates for purchase and refinance that moved higher in recent weeks,” said Nicolas Retsinas, director of Harvard’s Joint Center, in a press release. “The best that can be said of the market is that house price corrections and steep cuts in housing production are creating the conditions that will lead to an eventual recovery,” added Eric Belsky, executive director of the Joint Center. “For now, markets remain under considerable stress,” Belsky said.

The bleak study coincided with a separate report from the World Bank warning of more damage in the global economy. This week, investors will be focusing on housing data and any commentary the Federal Reserve offers on the economy. “On the economic front, new and existing home sales should show improvement but from very low levels,” said David Kelly, chief market strategist at JPMorgan Funds. “The recent back-up in FHA mortgage rates, although unwelcome, really should not be enough to prevent pent-up demand and still very good affordability from triggering a housing rebound.” Resource: John Spence, Jeff Moran

FHA Insures $144 Billion in Home Loans so Far in 2009

admin — Mon, 18 May 2009 20:02:32 +0000

The FHA mortgage lending reported endorsing $143.9 billion in single-family FHA home loans in the first six months of fiscal year 2009, up 169% from the same period in FY 2008. The Department of Housing and Urban Development expects FHA endorsements will total $290 billion when the 2009 fiscal year ends on September 30. In March, FHA insured $25.4 billion in single-family FHA loans, including $15.3 billion in FHA refinancing loans, according to an FHA monthly report. The report shows that FHA has a 7.08% serious default rate as of March 31 with 347,500 loans that are 90 days or more past due. FHA had a 6.91% serious default rate back in September. Meanwhile, FHA has a 63% share of the mortgage insurance market, compared to 23% for private mortgage insurers and 13% for Department of Veterans Affairs’ loan guarantee program.

FHA Hope for Homeowners Amendment

admin — Tue, 10 Feb 2009 19:12:42 +0000

This FHA loan enables homeowners can recapture 10% equity in their house immediately and benefit from mortgage relief with lower your mortgage payments with a FHA H4H Act Loan. The amendment would keep in place current taxpayer protections in the HOPE for Homeowners program that would be stripped if the bill passed without the amendment.

www.youtube.com/watch?v=a5-wtWFq4xY

Rep. Bachmann introduces a taxpayer friendly amendment to H.R. 384, the TARP Reform and Accountability Act. FHA mortgage lending continues to blaze a trail for home financing with thoughtful foreclosure prevention measures.

FHA Mortgage Programs Remain Strong in 2009

admin — Wed, 04 Feb 2009 07:39:58 +0000

FHA mortgage lending continues to provide more opportunities for new homebuyers and borrowers in need of mortgage refinancing. FHA rates remain very attractive for borrowers who do not have much home equity left. FHA home loans enable borrowers with less than perfect credit qualify for refinance loans. The days of the no money home mortgages that assist homeowners in consolidating high rate debt or cash out second mortgage loans that new homebuyers would have to quickly refinance.

FHA continues to offer great 1^st time homebuyer programs with new home financing requiring only 3.5% down. FHA mortgage brokers and lenders remain optimistic that Hope for Homeowners may help some of their borrowers prevent foreclosure. Home financing guru, Jason Cardiff said, whether it’s FHA or a loan modification, homeowners need to get up and do something to stop foreclosure.” Cardiff continued, “Mortgage lenders continue to provide loan modifications like we’ve never seen before, so contact a lender to refinance or seek counsel from a law firm that has a good track record of mortgage loan modifications with your lending company.” Read the original FHA loan article > FHA Mortgage Rates Creep Up to 5%

High Foreclosure Rates for California, Nevada and Colorado

admin — Fri, 07 Nov 2008 17:15:31 +0000

More than 3 million homeowners currently find themselves in mortgage trouble, and another 2 million are expected to join them. Among the 10 states with the highest home foreclosure rates Nevada, Florida, Michigan, Colorado Ohio and California are the states that house the most distressed homeowners looking for options to prevent foreclosures. Most political figures believe now that government needs to be involved on some level for bailing out homeowners to protect real estate and the housing market.

John McCain recently called on FHA to initiate a new loan work-out program to transition struggling homeowners into more affordable FHA mortgage loans. He even proposed to spend $10 billion aiding sub-prime homeowners with loan modifications. Congress put together a similar package, which industry insider’s claim would rescue 400,000 borrowers. President elect, Barack Obama has suggested he will budget $10 billion into a fund to stop foreclosures and he’s indicated he is willing to give another $10 billion to cities to buy foreclosed houses. Polls show considerable resistance to a government bailout of mortgage loans. Over 30% homeowners don’t owe any money on their properties and a majority of those who have a mortgage are not delinquent presently.