Those who believe that notion don’t have a clue. Programs like VA and USDA have been around for a long time. Both 100% financing programs have had lower default rates than FHA.
FHA is pricing itself out of the market. It has the highest monthly mortgage insurance rates of all mortgage programs. The next brilliant idea is that they want to eliminate the ability for their borrowers to ever get out of the monthly mortgage insurance.
The folks making these business decisions will be looking at only below average borrowers that don’t have any other choice. Sure, I will put a borrower into FHA loans in the future, but only if there is no other option.
They can blame others, but most people in the mortgage and real estate business know better. What do you think?
By: The NicheReport