FHA Loan to buy a Property

[Willie Bradley]

Hello! I am looking for some advice. What are the positives and negatives for a FHA loan? Since I don't have much in cash ($600) I want to use that loan to buy a property. Particularly, an apartment. Any advice? I am new to all of this.

[Chris Mason]

Originally posted by @Wendy S.:

@Kristin Smith

I was just about to ask if this is true re FHA loans as I had a lender say something along those lines today but more like FHA borrowers with credit scores below 650 are ineligible at this time. First it was that they would have to pay more points to secure a rate now they are ineligible..

What's the real deal? @Chris Mason, maybe u can shed some light on this for us?

Long story short, the mortgage industry is imploding. Higher risk loans are evaporating by the week. Non-QM is done, lots of places are cutting off cash out refinances, bye bye to reno loans, HML are getting conservative, bla bla bla. FHA is on the chopping block.

https://www.housingwire.com/articles/is-the-coronavirus-about-to-wipe-out-fha-lending/

Markets are on pause until they get a sense for how many people will not be making their April 1st rent/mortgage payment. It'll take some time to process that data.

SFR owner occ good credit is still open for business without any panicking going on.