FHA Mortgage Loans Causing a New Mortgage Depression

The financial markets may be facing another turmoil, as the FHA insured home loans may crack down some of th largest nations banks. The mortgage lenders such as Bank of America (BAC_), Wells Fargo (WFC_) and JPMorgan Chase are facing large losses due to a non proportional growth of mortgages borrowed through the FHA
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Why FHA Loans and VA Mortgage Rates Are Typically 0.5% Higher

In referencing to the rates on FHA and VA loans, they are typically 1/4-1/2% higher than FNMA/FHLMC rates. This is because the GNMA funds are based on the faith and credit of theUnited States… they are NOT based on the yields from the 10 year note which drive conforming/conventional rates.
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