or better, who are told they qualify for conventional and of course (FHA) yet they are offered a higher int. rate w/ conventional. what's the point of having excellent cr. to qualify for conventional when int. rate is better on FHA (many times)…if i can qualify at 680 for FHA, someone else has 780 will most likely get same rate on FHA! that sucks in a way….and they say conventional is for ppl w/ excellent credit..and? so what….even i was offered a better deal on FHA (through credit union) before.could've gotten the same deal at a 580! my fico score is well past that!
how is it that “FHA” loans offer lower int. rate than conventional? I’ve seen ppl with very good credit (720)
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... money down loans anymore. The FHA has lower-cost mortgages for people like you. Your best bet is to talk to a mortgage broker (someone at Wells Fargo or where you car loan is at) and ask them about the situation. they know more about it than we do. ... A good FICO is 700. A better FICO is 720. A great FICO is 740+ ? this would entitle you to the best rates being offered. You can get this by going to websites that offer it ? it usually costs like $20 to $40 to get it. ...
HAMP, FHA insured loans, moratoriums, the Fed artificially lowering mortgage interest rates by buying up $1.25 trillion in mortgage backed securities all create a sort of artificial market. In fact, it makes homes unaffordable. .... I just got a letter of offer for fha of $250000. The offer with conventional with $30000 down is $125000. I am in Sacramento. My credit is perfect. Any comments on this one? I can defiinately afford the mortgage on 250000. ...
When things are very good, people take ridiculous risks, and then things come crashing down and the risk just moves somewhere else ... We don't know where it's going next, but someone will be making money somewhere." Why? ..... The current minimum of 3.5% is far lower than what private lenders offer, making FHA-backed loans one of the last low-down-payment options left. Last year, through August, nearly seven in eight new FHA-backed loans carried down payments of less ...
There are many reasons. The main one is that FHA loans are backed by the government. There is less risk involved per se because if you default the government will pick up the bill. Conventional loans are risky cause the bank can potentially loose alot of money on the loan if you default. The market has something to do with it too. Right now (as I'm sure you herd) the market value of houses is going down down down. Forclosures are at an all time high. With so many people getting forclosed on, and the value of houses going down banks are stuck with foreclosed homes that aren't worth what they originally lent out on them. So if they resell them they are still loosing money since they lent out more than the house is currently worth. A while ago when the realestate market was hot, banks could offer lower rates. Values of homes were going up. Even if they were foreclosed on a bank could resell the house for a profit. Hope some of that helps you out.