FHA is not the timely over scrutinized loan it was 10+ years ago. Closing FHA loans super-fast is more times than not, easier to do with FHA than Conventional…I know because I’ve been doing this for almost 14 years. We’ve been closing FHA loans in 15-20 days for years in Flower Mound Texas and the surrounding Dallas area…assuming there isn’t extenuating circumstances outside the norm to complicate things.
FHA Appraisals vs Conventional Appraisal
At a point 5 years ago or so, the property condition of an FHA insured property was required to be a lot more sound than a conventional appraisal. Since the Real Estate and Mortgage crisis back during the big foreclosure epidemic, conventional appraisers have been forced to really tighten up their standards of the subject property. This has made it such that in today’s lending environment, the difference in the scrutiny of the property condition between conventional and FHA appraisals are very similar. As all the major lenders and banks were licking their wounds from the foreclosure epidemic, making sure the collateral of the loan (the subject property) was in the best of best shape became one of the major variables that were focused more upon to make sure the banks could recoup their loss upon default and foreclosure.
FHA Reduced Costs
Since the FHA Mortgage Insurance costs is cheaper now on FHA mortgages, buyers with little money to put down on a home are finding the FHA mortgage a lot more affordable.
Leave a Reply