Question: I am sure this has been asked before, but I am new to this | newsgroup. If anyone has this info please e-mail me or post to | the group. | > | Question: | > | >Can someone explain the different types of loans to me and who | >may apply for the loan? | > | >FHA, |> | Federal Housing Authority. Federal program which allows house purchases | under very favorable conditions to buyer, with such low dp’s as 3% of | purchase price. |> | I understand the paperwork is a bear, and that FHA can be very picky | about the condition of the property — no peeling paint on the exterior | allowed, for example. My Mom, a loan broker, recommended that if we | could do without the FHA program, that we do so, since many lenders find | them hard to do, and very bureaucratic (and so will not try real hard | to close the loan).

Answer: Paperwork IS a bear, or at least it was with our first FHA-loan home, but getting into our present FHA-loan home was a cakewalk, but then, I was ready for them this time. Also, Fleet purchases over 95% of the FHA paper. When I applied for my present FHA loan, the lender stated upfront that they sell 100% of their loans (lender is affiliated with the largest builder here in the Austin, TX area) and when I asked if this loan would be sold to Fleet, she affirmed it.

FHA inspectors can drive both parties (seller & buyer) totally nuts, since they almost always find a problem in a pre-owned home. To make matters worse, when repairs have been made and it’s time for a reinspect, the second (and different from the first) inspector can STILL call out problems the first inspector might not have seen. This story is based on personal experience.

One more item with an FHA loan . . . the ratios on the loan are more lenient, both front and back, than a conventional loan, with a front ratio allowable of approx. 41% vs. 35% on a conventional loan. VA’s loans are a better these days than they used to be in that the seller no longer has to pay any points as part of the loan, as was the case in the past if the seller accepted a VA-bid loan. As a previous seller, VA loans are a LOT more attractive by FAR than they were in the past. statement. I will agree that there are LOTS of people who will take you to the cleaners if they can, and their are those who simply want to sell you a house, but there are those out there who are honest. I’ve actually met a couple of them. I would simply state that purchasing a home is a VERY emotional decision for almost everyone, yet lenders, brokers, agents, etc. view it as business and sometimes they’re downright greedy while a lot of times they’re mostly just trying to do a job and make some money AND earn your trust, since it’s in their best interest to treat you fairly, in that follow-up business is very crucial to them. But yes, I HAVE met more than my share of sheister buttheads.

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