Dallas Mortgage Home Loans, FHA Loans

For many years home mortgage insured by the Federal Housing Administration (FHA) have made home ownership possible for millions of home owners. During the "boom" FHA loans lost a lot of ground in the marketplace because non-conforming loans were often easier to get and cost the borrower less scrutiny and often less out of pocket.

Welcome the day when Housing and Urban Development Secretary (HUD) Shaun Donovan stood in front of Congress and reported the reserves of the FHA insurance pool to be only .53% - far below the federally mandated, by law, 2% reserves. As you may imagine Mr. Donovan, in an effort to save his job, is now scrambling for good ideas to get those reserves back to the minimum legal level. Let us all observe as the fireman tries to put out a big fire while his own pants are on fire.

Here are some of the recommendations thus far:

1. Raise the required minimum down payment from 3.5% to 5%
2. Lower the maximum seller contribution from 6% to 3%
3. Establish a required minimum credit score
4. Eliminate the ability to finance the Up Front Mortgage Insurance Premium (UFMIP) into the loan
5. Raise the cost of FHA mortgage insurance (higher premiums)

Lynn Crosby "Lynn911.com" - Texas - FHA, USDA, VA and Conventional Home Loans (972) 699-9111