Why FHA is adding value everyday for homebuyers

[Stephen Rinaldi]

FHA loans for the longest time have been frowned upon in the industry, most agents look at these loans as more difficult to close and usually envison a buyer with a 600 credit score and no money... time are changing quickly. Earlier this year FHA lowered their MI by 35%, and the rates FHA Im seeing are close to 6.125-6.25% while conventional rates with out points, a true comparable, are pushing near 7%.

The real negative of FHA loans was MI for the life of the loan, but with a refinance being imminent in the upcoming years, that negative isnt as much of a deterent. The truth is, unless you have prestine credit, in may cases FHA is just the better deal in the market place today. Just FYI