FHA Loan and President Bush’s Economic Growth Package for the Best Rate

President Bush is responsible for the Economic Growth Package enforced through the Economic Stimulus Act of 2008. This will temporarily increase the FHA loan maximums in U.S. cities. In the end, nearly a quarter million families may benefit from this recent change. “A whole is made up of it’s smaller parts”, and as we know that this WILL create liquidity in a struggling housing market, the hope is that this is one of the major “small parts” that will eventually add up to the whole in strengthening our U.S. economy. With the demise of zero down payment financing, or 100% financing, and the demise of subprime lending, this may show to be a larger tool than many believe. Many lenders including myself have saw that we can offer our buyers/borrowers a lower FHA interest rate than we could conventional rates. Also important, FHA will allow twice the amount or more closing costs to be paid by the seller than conventional. Ultimately, the buyer/borrower will be able to get a lower rate, lower payment, and lower out of pocket costs at closing w/ an FHA loan than a Conventional. If you are interested in seeing what the FHA increased limit is in your area, just go to the newly updated FHA Loan Limit page in the HUD website. If you were interested in browsing the News Room in HUD for other important tid bits, they have plenty of reading there for you.
In the past, many true mortgage brokers denied the option of keeping their FHA license because of the vast array of other loan programs that worked side by side with a typical FHA loan. Also, the up keep and maintenance of an FHA license was more labor intensive and costly than they cared to participate in. Today, FHA is a necessity in a Loan Officers arsenal of loans w/ the aforementioned demise of sub prime lending and loss of 100% financing. So, make sure you ask your Mortgage Pro/Loan officer if he is FHA licensed and if he is not, don’t take the chance on being fooled in believing their “other option”. Talk to another FHA licensed Loan Officer/Lender and get his view so you can do your own comparing to what your original lender offered you.
Best of luck in you dream home hunt, and “DON’T KEEP ME A SECRET”!!!! (: If you are looking for a Professional in the finance genre of needs in Frisco, TX, you should contact one of the experienced professionals w/ Frisco Financial Service who appear on the first page of Best In Frisco.