Posted on May 8, 2011.
Daysi Larzelere says...
Ok...Dan P doesn't know the full scope of how FHA loans work.
FHA only insures loans...they do not make loans directly.They are technically "FHA insured loans" because they are insured by FHA, but private lenders lend the funds for the loan.
FHA does NOT HAVE STRICT GUIDELINES ON WHO CAN DO FHA LOANS.
The reason smaller lenders choose not to do FHA loans is that the application fees to get approved are in the thousands of dollars..small lenders don't see FHA insured loans as being profitable enough to go to the trouble.
Loan officers do not have to have any type of special certification or training to do FHA insured loans...neither do Realtors.
FHA underwriters, however, do have to be approved by HUD to underwrite the loans....and it's not an easy certification to get.
The only thing that is different is a few extra documents that the bank has to process and a couple of extra guidelines...all designed for your protection.
People think that FHA loans are difficult to close or some kind of mystery...there is no mystery for those that understand how they work.
Posted on May 13, 2011
I'm looking at houses online and Some of Them Say FHA buyers welcome. Does this mean That Some People Do not Want To Deal With Someone Who has year FHA loan? Please tell me aussi Anything you know about FHA loans. Thanks.