{"id":10474,"date":"2009-12-02T10:50:00","date_gmt":"2009-12-02T17:50:00","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=10474"},"modified":"2009-12-02T07:29:23","modified_gmt":"2009-12-02T14:29:23","slug":"its-going-to-get-harder-to-get-an-fha-loan","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10474\/its-going-to-get-harder-to-get-an-fha-loan\/","title":{"rendered":"It&#8217;s going to get harder to get an FHA loan&#8230;&#8230;"},"content":{"rendered":"<p>We&#8217;ll get more details later today, but it looks like it&#8217;s going to get harder and be more expensive to get an FHA loan.&nbsp;&nbsp; A couple of main points to consider:<\/p>\n<ul>\n<li>FHA is currently losing money by the truckloads, so something has to change.<\/li>\n<li>The increased FICO scores, larger downpayments and reduced seller concessions will probably weed out a few people, but not that many.<\/li>\n<li>It will make it more expensive to buy a house FHA.<\/li>\n<li>At first glance, the part about scrutiny of the lenders seems like it really wouldn&#8217;t affect borrowers, right?&nbsp;&nbsp; Wrong, here&#8217;s why.&nbsp;&nbsp; If FHA becomes more demanding in terms of their buy back provisions with lenders, guess what, lenders are going to be looking at absolutely every little detail on the loans to make sure that they comply with the guidelines.&nbsp;&nbsp;&nbsp; Your borrower needs to have 12 months on the same job and he&#8217;s only at 11.5 months?&nbsp; Sorry, wait two weeks.&nbsp;&nbsp;&nbsp; The paystubs are dated 31 days before application and we need 30 &#8211; sorry, got to get another one.&nbsp;&nbsp;&nbsp; The bank statement, well, you get the picture.<\/li>\n<\/ul>\n<p>I&#8217;m working on a post outlining the details of what Fannie is doing next week Saturday with their new guidelines.&nbsp;&nbsp; Fun times&#8230;..<\/p>\n<p>Tom Vanderwell<\/p>\n<p><a href=\"http:\/\/www.cnbc.com\/id\/34232531\">FHA to Toughen Mortgage Rules in Lenders Crackdown &#8211; Real Estate * US * News * Story &#8211; CNBC.com<\/a><\/p>\n<blockquote><p>Amid rising foreclosures and falling home prices, the Federal Housing Administration is proposing new rules to crack down on lenders and asking Congress for the authority to raise certain borrower requirements, all in an effort to reduce risk to its $685 billion mortgage portfolio.<\/p>\n<p>While FHA Commissioner David Stevens said in an interview on CNBC following that release that the FHA would not need additional federal funding to meet its loan losses, he added that FHA will be looking for new ways to reduce risk.<\/p>\n<p>Those steps will include raising minimum borrower FICO scores, requiring larger down payments, and reducing the maximum permissible seller concession from six percent currently to three percent. <\/p>\n<p>It could also include raising up-front and\/or annual insurance premiums, which would require Congressional authority. This is according to the testimony HUD <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10474\/its-going-to-get-harder-to-get-an-fha-loan\/#more-10474\" class=\"more-link\">Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>We&#8217;ll get more details later today, but it looks like it&#8217;s going to get harder and be more expensive to get an FHA loan.&nbsp;&nbsp; A couple of main points to consider: FHA is currently losing money by the truckloads, so something has to change. The increased FICO scores, larger downpayments and reduced seller concessions will [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[432],"class_list":{"0":"post-10474","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"tag-fha-troubles","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10960,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10960\/my-jim-casey-take-on-the-fhas-policy-to-address-risk-and-strengthen-finances\/","url_meta":{"origin":10474,"position":0},"title":"My &#8220;Jim Casey&#8221; take on the FHA&#8217;s Policy to Address Risk and Strengthen Finances","author":"Scott Schang","date":"January 22, 2010","format":false,"excerpt":"\"Before I knowed it, I was sayin' out loud, 'The hell with it! There ain't no sin and there ain't no virtue. There's just stuff people do. It's all part of the same thing.\" - (Preacher) Jim Casey \/ Grapes of Wrath Here's my take on the FHA 1\/20\/10 press\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.californiateachersandemployeeshomeloanprograms.com\/wp-content\/uploads\/2010\/01\/Read-all-about-it.gif?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":7402,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7402\/if-i-never-make-a-single-payment-on-my-super-cheap-fha-loan-do-i-still-get-my-8000-tax-credit\/","url_meta":{"origin":10474,"position":1},"title":"&#8220;If I never make a single payment on my super-cheap FHA loan, do I still get my $8,000 tax credit?&#8221;","author":"Greg Swann","date":"March 8, 2009","format":false,"excerpt":"WAPO:The last time the housing market was this bad, Congress set up the Federal Housing Administration to insure Depression-era mortgages that lenders wouldn't otherwise make. This decade's housing boom rendered the agency irrelevant. Americans raced to aggressive lenders, seduced by easy credit and loans with no upfront costs. But the\u2026","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9880,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9880\/fha-broker-approval-delegated-to-approved-de-lenders-will-this-squeeze-out-smaller-players\/","url_meta":{"origin":10474,"position":2},"title":"FHA Broker Approval Delegated to Approved DE Lenders: Will This Squeeze Out Smaller Players?","author":"Tony Gallegos","date":"September 28, 2009","format":false,"excerpt":"Over the last eight days, calls from my clients and mortgage associates having been growing on a daily basis concerning the recent announcement by the FHA delegating mortgage broker approval to originate FHA loans to approved DE lenders. Quite frankly, many small lenders and mortgage brokers are concerned the mega-lenders\u2026","rel":"","context":"In &quot;General&quot;","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9921,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9921\/bloodhoundblog-radio-fhava-in-2010-with-tony-gallegos\/","url_meta":{"origin":10474,"position":3},"title":"BloodhoundBlog Radio:  FHA\/VA in 2010 (with Tony Gallegos)","author":"Brian Brady","date":"October 1, 2009","format":false,"excerpt":"Wondering about the future of VA home loans and FHA mortgages?\u00a0 Listen to my interview with Bloodhound Blog contributor, Tony Gallegos.\u00a0 We discuss: San Diego County VA\u00a0mortgage statistics (the market share number is going to astound you)\u00a0 Why VA loans have the lowest default rate among all four major loan\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9723,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9723\/why-your-fha-decision-engine-approval-gets-denied\/","url_meta":{"origin":10474,"position":4},"title":"Why Your FHA Decision Engine Approval Gets Denied","author":"Tony Gallegos","date":"September 11, 2009","format":false,"excerpt":"The occurrence of FHA loans receiving an FHA TOTAL Scorecard approval and subsequently having the loan denied once it hits the underwriter\u2019s desk is happening more and more. It\u2019s a reality the field must acknowledge and from what I have seen, the good originators have taken note and have adjusted\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7903,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7903\/fha-and-va-assumable-loans-offer-an-exit-strategy-for-todays-buyers\/","url_meta":{"origin":10474,"position":5},"title":"FHA and VA Assumable Loans Offer an Exit Strategy For Today&#8217;s Buyers","author":"Brian Brady","date":"April 16, 2009","format":false,"excerpt":"How can an FHA mortgage or VA home loan sell a home faster?\u00a0\u00a0 When mortgage rates are 10% and the 5% government loan is assumable. I've taken a few pokes at the contributors on Active Rain; John MacArthur isn't one of them.\u00a0 John is a Branch Manager with Long and\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=10474"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10474\/revisions"}],"predecessor-version":[{"id":10475,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10474\/revisions\/10475"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=10474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=10474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=10474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}