Conventional versus FHA loans in 2013
When it comes to FHA loans, it is being reported that requirements are less stringent – and will stay that way until 2014 – but the same type of loan can still be hard to qualify for because several condo buildings that once were FHA-approved now are not. In addition, condo loans can be a bit shaky because of the building’s financial situation – if several owners are behind on payments, monthly fees increase.
Thomas Skiba, the institute’s CEO, was quoted speaking highly of the new condo requirements in a HousingWire recently. “FHA has responded to the critical issues we’ve raised. By doing so, more Americans can obtain FHA-insured mortgages to purchase condominiums,” he said. “This will spark home sales and help tens of thousands of condominium communities begin to recover from the housing slump, and that can only help the national economy.”
When it comes to mortgage trends, do you think products will encounter major changes this year, or will the mortgage market remain about the same?
JoeLoomer
January 6, 2013 at 10:32 am
Fed Chair has stated it’s critical to keep the rates down to continue the economic recovery.
Navy Chief, Navy Pride
Greg Cook
January 6, 2013 at 11:31 am
Hi Stephanie, if the Fed follows through on recent statements that they will stop buying mortgage backed securities by the end of 2013, we can expect interest rates to spike and qualifying to get much more stringent. The Fed is buying about $85 billion a month in Treasuries and mortgages, without them the market will change dramatically.
Of course I could be wrong