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Why so many FHA assignments

ucbruin

Thread Starter
Elite Member
Joined
Mar 11, 2014
Professional Status
Certified Residential Appraiser
State
Massachusetts
If interest rates are so low and house values are at near record highs (if not beyond)....
And unemployment remains at record lows....

Why am I receiving so many FHA refis/purchases assignments? :unsure:
 

graindart

Junior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Montana
Might be regional. Definitely not seeing that here. House values relatively stable in this area and FHA are rare for me lately.......maybe 1 or 2 per month.
 

alebrewer

Member
Gold Supporting Member
Joined
Mar 11, 2008
Professional Status
Certified Residential Appraiser
State
Texas
I think that, nationally, FHA represents about 15% of first mortgages? At least that's the number I saw for 2019. Agencies at around 75% and VA around 8%. I haven't heard that FHA is making an attempt to capture more of the market...
 

Artemis Fowl

Senior Member
Joined
Mar 16, 2004
Professional Status
Certified Residential Appraiser
State
Michigan
A guess? More people are qualifying now. It's an upward indicator not a downward one.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
I haven't done an FHA in months, maybe 6. Used to do two a month.
 

Tom Woolford

Elite Member
Gold Supporting Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Probably because they are maxed out on conventional loans.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
If interest rates are so low and house values are at near record highs (if not beyond)....
And unemployment remains at record lows....

Why am I receiving so many FHA refis/purchases assignments? :unsure:
IIRC you recently said you have over 30 years in. What legitimate lender risking their own money would get on their knees at these rates? I would not be surprised if Fannie and Freddie are expanded to include FHA insured loans up to multi millions. Remember when "Jumbo" was a thingy?
 

Peter LeQuire

Elite Member
Joined
Jan 3, 2005
Professional Status
Retired Appraiser
State
Tennessee
Could it be that FHA's higher LTV for non-cash out refis, with appraisals, are available to homeowners who bought with high ratio conventional loans?
 

Denita Neuenhaus

Junior Member
Joined
Jul 21, 2015
Professional Status
Real Estate Agent or Broker
State
Florida
From what I see on the buyer/borrower end is that IF the borrower's credit score is less than 700 and the LTV is greater than 80%, the FHA loan terms are much better in terms of interest rate and MIP/PMI.
The differences I have seen in the last week or so is 1% on the interest rate (FHA is 1% lower) and the MIP on a FHA loan is half that of the PMI charged on a conventional loan.
So, it's a no brainer to take the FHA loan. Particularly if the borrower is at a 90% or less LTV where they can drop MIP after 11 years. (If the LTV is higher than 90% then the MIP stays for the life of the loan - so it's a different decision unless the property is likely to be sold or refi'ed in the next 11 years).
 
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