Shopping for a loan? You should be able to find one, fairly easily. FHA loans have made a comback.
According to one mortgage broker:
“If you put down 5 percent, you’ll need a credit score of at least 660 [to qualify for a FNMA or FHMLC loan]. But if you go with an FHA loan, you can put down [as little as] 2.25 percent and allegedly they’ll take a 580 credit score.”
According to Bank of America:
In the calendar year 2006, Bank of America originated $1.5 billion of FHA loans. In April 2007, [they] originated $1.1 billion in FHA loans. In 2008, Bank of America expects to fund $5 billion in FHA loans.
FHMLC and FNMA loans require 10-15% down, while FHA loans can be written for up to 97% of home value.
Source: FHA loans make comback – By Ilyce Glick, Inman News
