New real estate poll: FHA loans
As defaults increase on FHA-insured loans, so has chatter about the agency's future. Will the Federal Housing Administration require a bailout, industry players wonder?
I know this is of interest to many of you, whether you're a potential FHA borrower, an anxious housing-market watcher or an aggravated taxpayer. So weigh in.
What would you do if you took over the mortgage program?
Have you had any recent experience with FHA-insured loans? How did the process go?
Comments
I'll preface this by saying I'm not a homeowner. I'd like to buy in the next few years, but I haven't gone through the process.
With that said, I find it hard to believe the government loans require only a pittance for a downpayment. According to the bank's standards, I could qualify for a mortgage waay more than I feel comfortable with, and it's not just because of job security worries. It costs a lot to maintain a home -- and you also want to have money for retirement, kids, the occasional vacation ...
If FHA loans are supposed to be safe, I have no problem with a requirement of a 10% downpayment. Sure, that would mean many people would have to wait longer to get their home (or, God forbid, get a smaller home). I'm OK with that, probably along with the millions who are out of work in part because of the housing meltdown.
If we're all a little more conservative with our money, perhaps we can avoid re-creating the housing meltdown -- this time using government-backed loans.
Posted by: Justine | September 6, 2009 9:52 AM
I don't think anyone can fault the FHA, Fannie or Freddie for much of the mess they are in now - I mean, the economy's already quite troubled, the job market is in poor shape and what kind of health, relatively speaking, would the housing market be expected to be in?? Skyrocketing? I mean really...Just when people need help, I think that's what these programs are for, ain't they?
Posted by: munchong | September 8, 2009 12:13 AM