I recently came across this blog post from Craig Tomlinson of Bell Real Estate of Eugene. He was asking some of the same questions that a lot of people are right now about what is going to happen with FHA loans in the future. Like him, I don’t have the answers to what FHA will be doing, but I do know what they are doing. FHA still is only 3.5% down payment. FHA loans can be combined with the Springfield SHOP and Eugene HAP programs. FHA loans have more liberal underwriting criteria. FHA remains the number one choice for First Time Home Buyers. FHA does not require appraisals ordered through HVCC.

All of these are great characteristics of FHA loans. They are also some of the things that set them apart from most conventional loan programs. They could be changed in the near future if FHA’s reserves drop below 2% which is just one more reason to seriously consider getting off of the fence if you are “thinking” about buying a home. Craig has a great point when he said the changes will “probably not (be)anything that will help people get loans.”

We know that currently the First Time Home Buyer Tax Credit will go away on November 30. It is possible that the increased loan limit for Lane County will go away in January and changes in underwriting, down payment and mortgage insurance could take place any time. If you are thinking about buying a home, schedule one of our First Time Home Buyer seminars, for Thursday or Saturday. You can always call me if you have questions at 541-342-7576/541-221-3455 Cell or e-mail me.

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