Hot off the presses in the WSJ today, funding for FHA loans is dwindling by the minute and the program could be out of funds within the year!
Who didn't see this coming? With the amount of demand, the switch within the past three years from predominatnly Conventional financing to an almost exclusive surge in FHA loans floating about, and the ever tight lending market, of course this was bound to happen.
This is a wake up call to the market--Hello! You need to loosen credit! This real estate recovery cannot depend upon First Time Home Buyers with FHA loans. There has got to be some more variety introduced into the marketplace if we want to see some real recovery.
This economy certainly cannot keep bolstering the banks. The Banks who have liquidity (you know who you are...shaped like a big box, etc) need to come up with some creative lending programs to take the burden off of this govrnment entity. It was never the intention for FHA loans to be the primary product in the marketplace. Hey big banks! Remember when we bailed you out!? Time to give your government a break and start lending!
If you've been on the fence about buying, affordabilty and interest rates have never been lower, and never been lower together. Now is the time! If you are considering an FHA loan, you might want to get your FHA case number quick! Times-a-wasting! For more information on acquiring an FHA loan, or other home purchasing information please contact Jennifer S. Hamilton today! I'm here to help! :)