FHA Loans Are Bouncing Back

It used to be that many sellers refused to list their home for sale with FHA terms because few wanted to deal with the persnickety attitudes of FHA appraisers and the laundry list of underwriter demands. FHA loans took a hard hit in 2005 when its share of loans fell to 3% of all home loans. As a result, FHA made modifications such as changing its appraisal procedures and property improvement requirements, eliminating lender letters and rising its loan limits. Buyers are fast returning to FHA loans now that they are easier to obtain and no longer require 45 days to close. Go ahead. Take a look at FHA. You might be pleasantly surprised at the changes in FHA guidelines and how competitive FHA loans are today. It's a whole new world for FHA.

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