Mortgage For Your Honolulu Real Estate, Consider FHA First – Written by Guest Contributor
Tim O’leary, with Wells Fargo Home Mortgage of Hawaii, is someone I consider a friend, as well as someone who I believe offers a high quality level of service and loan product. He has graciously offered to contribute an article from time to time about, of all things, mortgages, lending and related subjects. Please enjoy his first contribution:
In 1965, the Department of Housing & Urban Development, HUD was formed. Under HUD operated & operates today as the Federal Housing Authority, known as the FHA. HUD’s goal, through the FHA, was to increase homeownership across America. It was a major breakthrough in lending allowing potential home buyers to put as little as 5% down payment and lenders would be willing to lend money with the assurance that the federal government would ‘insure’ the loan to difference in the event a borrower would default on a loan.
With today’s financial uncertainties, FHA has been the ‘darling’ of mortgage lending. Conventional lending woes created through the many problems at Fannie Mae & Freddie Mac, has made traditional lending much more restrictive. Below is a comparison of FHA and Conventional mortgages.
