So if a borrower is having trouble making on-time payments, they can apply for help. The great comment that Clark made is that he touches on FHA homeowner assistance or relief. It just makes complete sense because there were lots of REALLY low credit scores that were approved by FHA that probably wouldn’t have ever made it through as a conventional loan. To comment on Clark Howard’s video, I’m not very surprised that FHA loans have gone to foreclosure in greater proportion than conventional loans. The thing is though there were lots of FHA loans that came though that had really low credit scores.
Yeah, I did a double take on that one and quite a few others. Of the tens of dozens of FHA loans I worked on I remember seeing one closed FHA loan where the borrower’s middle credit score was in the mid 400s! Don’t ask me how. Where an average Sub-Prime 2 year ARM was starting at say 8 – 10%, FHA may have been close to half that rate! If you had low credit scores and didn’t have much down payment $ to drop on the purchase of a house the decision was obvious try for an FHA first. One big difference between FHA loans and Sub-Prime was that FHA’s interest rates were most of the time WAY better for the borrower even though they both would approve borrowers with bad credit scores.
This was at the time that Sub-Prime loans were starting to get really ramped up. By far most of the loans I worked on were “A paper” conventional loans, but there was the occasional FHA deal that popped up. My job was mostly funding conventional and FHA loans. This bank has a strong ethical reputation and is still doing great business today. Go ahead and check out the short video and come back to read the rest of the article here.īack in my college years I worked at one of the Mid-West’s largest mortgage lenders.
#CLARK HOWARD BEST FINANCIAL SOFTWARE TV#
This video is from Howard’s HLN TV show that aired a few days ago.
#CLARK HOWARD BEST FINANCIAL SOFTWARE HOW TO#
By Tim Krulia – Private Money Blueprint CFOĪs part of our quest here at PMBP to give you the single best resource on the financial aspects of growing your real estate investing business (aka, we help people find private money quickly, easily, and abundantly)… here’s a video I found that compares the foreclosure rates of FHA loans and conventional loans.Ĭlark Howard is a famous consumer advocate who basically gives people great tips about how to spend or not spend their money.