What Does the Future Hold For FHA Loans?

The Federal Housing Administration’s “elevated role” in helping ensure mortgage financing remains available is temporary according to U.S. Assistant Housing Secretary David Stevens. In testimony before a housing subcommittee of the Senate Appropriations Committee Stevens, who is also the FHA commissioner, said:

“Until the private sector can step back up, they need the FHA, and so does our housing market.”

However, Stevens and other observers and lawmakers expressed concern over the FHA’s ability to be involved in the housing market long term.

What does this mean for you?

The FHA still remains a big player in the mortgage industry, meaning that FHA loans and refinancing options are still available to consumers. For now. FHA initiatives, such as higher premiums, strengthening credit rules and risk controls are currently on the table. If passed, these initiatives would have an impact on the way FHA loans are currently obtained. The FHA has played a much more prominent role in the industry now that other programs, such as the U.S. Federal Reserve’s purchase of mortgage-backed securities and the Obama administration’s first-time home-buyer tax credit, have expired.

For the average consumer, this means that the time to apply for an FHA loan to either purchase your first home or complete a home refinance is now. If the volatile financial markets are any indication, you never know what changes tomorrow may bring. Current FHA regulations allow for low down payments, high refinance percentages, a streamline option and approval with flexible credit guidelines. All of these great benefits could be changing in the near future.

Amber Hunt is a writer with Quicken Loans who specializes in articles about FHA Streamline Refinance, Mortgage Refinance, and other home-buying related information.

Author: Amber Hunt
Article Source: EzineArticles.com
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