According to the MBAA, the government-insured (FHA and VA loans) share of mortgage applications was nearly 36% last month, the highest level since November of 1990; FHA and VA accounted for almost 40% of purchase applications.
There are numerous reasons for this: (1) FHA and VA offer the only low-down payment options; (2) FHA loan limits go all the way to $729,750; (3) FHA now allows “As Is” purchases, making it far more flexible than in the past; (4) FHA allows for far more appraiser control, and therefore a much higher quality of work with respect to appraisals; and (5) FHA is far more flexible with respect to debt ratios and paying off debt to qualify.
Not only should listing agents not shy away from FHA financing, they should welcome it in many situations. We can still easily close FHA transactions in under 30 days.
Founder/Broker | JVM Lending
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