Ep. 50 - The 40-Year FHA Loan: Fact or Fiction?
We’re taking a stand for you! Misinformation in the mortgage industry has run rampant for too long, and today, you’ll get the truth. What do we mean? In this episode, we debunk the misconception of a 40-year mortgage term for FHA loans and emphasize the importance of accurate information in the mortgage industry. We discuss recent changes in FHA loans and how they compare to conventional loans, cautioning against an overflow of business that could prompt FHA to raise premiums again. We’ll also touch on other products that could help create affordability in the market and measures in place to protect home values and maintain an upward trend in the real estate market.
Tune in for the facts hidden in the FHA fiction!
[00:01 - 04:27] No, there is no 40-year ‘amateurization’ FHA loan—time to set the record straight
[04:28 - 11:03] FHA offers modification to help struggling homeowners lower their mortgage payments
[11:04 - 17:57] “Life altering circumstance change—” FHA allows 40-Year Loan Modification to address rising default rates and looming recessions
[17:58 - 25:56] FHA loans are becoming more attractive for borrowers who want to get into better financial positions
[25:57 - 31:11] The importance of this info for homebuyers: upward bias in real estate and the current threats to its market safety
Quotes:
"Modifications are to help, not to benefit. Big difference here." - Quinton Harris
"Traditionally speaking, trends show that as we get closer to a recession, the FHA loan feels the impact before other loans.” - Quinton Harris
"There are plenty of people choosing to get an FHA loan because it’s a better financial position.” - Alex Stewart
"There's a whole lot put in place to protect home values and to keep them from just plummeting...it has an upward bias.” - Alex Stewart
Resources Mentioned:
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