Subprime Mortgage Brokers and FHA foolishness!!!

FHA laons are the bomb!!!Hi folks. So here’s the deal. I should NOT know more about FHA loans than the Mortgage Brokers that are attempting to do them. My market area, Poinciana FL, has always been a 100% financing market. Back in the 90s if you wanted to purchase a home in Poinciana it was USDA “Farmer’s Home Loan” all the way. This was the mortgage product of choice. Back then you couldn’t do FHA in Poinciana because the HOA(Homeowners Association) would not subordinate their first lien position. 

Finally, about the year 2000, the HOA changed their position on this, but by then, sub-prime loans ruled the day. FHA, even though it was now available, was not needed. 

Sub-prime Mortgage Brokers had a field day in Poinciana up until April of 2007 when the rug was pulled out from under them. Not knowing how to do anything BUT 100% loans they started jumping onto the FHA, Nehemiah and Ameridream band wagon. The only problem was……they were and are clueless on the intricacies of FHA and down payment assistant programs. 

So that’s where we are at today and………..Houston, we have a problem!!!! 

FHA with down payment assistance is a GREAT product for PRIMARY home Buyers. It will NOT work for someone who just wants to buy a second home or a property to flip. Read this: 

  • “Down payment assistance and community redevelopment programs offer affordable housing opportunities to first-time homebuyers, low-income and moderate-income individuals and families who wish to achieve homeownership.”

Could it be any clearer who these programs are designed to help? Please quit trying to fit a square peg into a round whole. FHA don’t play that s**t!!!

If you want to specialize in FHA loans then learn the product. It’s not brain surgery but it does require knowledge. So REALTORS®, if you have Buyers and you want to submit offers on one of my listings then PLEASE make sure your Mortgage Broker knows what they are doing. I will be doing my due diligence and will be counseling my Sellers to reject your offers if the financing does not line up with what the Buyer is trying to achieve. Is that clear enough for ya? I hope so.

OK, that’s all I have to say about that. What say you?



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