In July 2007, the real estate market changed. Due to the poor performance of subprime mortgages, investors lost confidence in the mortgages they were purchasing. Since then, the financial markets generally have been on a roller coaster ride, oil prices are rising, and nontraditional mortgage lending has virtually disappeared. The cost of credit has even been increasing for conventional borrowers. The discontinued use of exotic subprime mortgage products is not a temporary phenomenon. “Stated income” mortgage products are not returning to the market. It is unlikely that lenders will offer 100 percent financing products.
Where can a borrower with a low down payment or less than perfect credit find an affordable, safe mortgage? They can turn to mortgage products that are available from the world’s largest insurer of mortgages. Since 1934, the Federal Housing Administration (FHA) has insured more than 35 million properties. FHA products offer low down payments, competitive interest rates, and greater flexibility than most conventional mortgages. FHA is easier to use than ever before.
We will be happy to refer you to one of our preferred lenders to prequalify you for a loan on your new home.!
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