Now that the federal government shutdown is firmly in our rear view mirror, the emphasis on housing finance reform takes center stage as the Federal Housing Administration continues to push for it as a top priority for President Barack Obama and his administration.
Speaking at a Zillow and Bipartisan Policy Center sponsored housing forum recently, FHA Commissioner Carol Galante said that her agency is currently concerned about the shift in the Home Equity Conversion Mortgage program and credit overlays, which contribute to a fair amount of risk.
“We have to make our housing finance system stronger, safe and more fair,” Christina Mlynski of HousingWire quoted her as saying. “The opportunity is now and it’s too valuable to waste. We need to push these actions home over the next several months because housing is an engine to keep the economy on a full road to recovery.”
The news source stated that the average credit score has been around the 700 mark for the past several years and as of late, FHA borrower credit scores are around the 690 mark, which results in credit overlays. Also, shifting to lower credit scores is the result of the FHA losing higher-end borrowers to mortgage insurance carriers.
The FHA and FHA loans are designed to appeal to first-time home buyers who may not qualify for conventional lending due to any number of factors. FHA loans come with attractive interest rates and down payment options of as low as 3.5 percent, making them ideal for on the fence buyers who are in need of financing.
In North Texas, the housing market is booming despite limited inventory and rising prices, making FHA loan availability a must for first-time home buyers looking to compete. Contact us today to learn more about North Texas real estate opportunities.