There are outstanding opportunities for investment in the home loan field, even if all the news coverage lets you believe there are none. The current mortgage market is getting the squeeze but that is not to say there are not opportunities or that everyone will be effected. Soon to be home owners, or those hoping to be home owners will find options to select from in home loans.

Credit….It Matters

Those looking for an opportunity to find a home loan to buy their dream home, starter home or any home in between, need to realize that credit scores make a large difference. Many lenders are shying away from lending to those who have low credit scores or have had difficulties in the past. With so many filing foreclosure, it’s understandable that these loans are harder to get…but all is not lost.

Even if you do have some problems, there are solutions available to you. One of the best solutions for borrowers with less than stellar credit is to consider FHA loans. FHA is a government department that provides an added level of security to lenders. While they will not help you specifically, they will provide lenders with some security to lend to you. Indirectly, it does help the homeowner though. With FHA insuring your mortgage, lenders look more favorably on your application. They have less risk investing in you with FHA behind you. Therefore, even for those who have a lower credit score, interest rates may be less.

Good Credit Helps

Home buyers with good credit will find opportunities available to them. In some situations, shopping around from lender to lender may give you an advantage at this point. Now, there are less qualified applicants to choose from, so lenders are going above and beyond normal offers to attract good borrowers. It is estimated that as many as 1/3 of applicants who qualified for loans in 2005 and 2006 no longer have the ability to qualify for the same loans today. This takes into account the loss of subprime loans and alternative loans that are no longer being offered as lenders tighten their belts.

Step To Getting The Best Loan

You want to buy a home. You want the most affordable home loan with the largest amount available to you, that fits within your budget. Here are some tips and steps to help you find that ideal home loan.

• Do not overlook the benefits of FHA loans. I cannot stress enough that for anyone borrowing; this is the best route to take.
• Improve your credit as much as possible…or at least do not make it worse. It will make a big difference down the road.
• Compare lenders, not all will offer you the same interest rate no matter what your credit score is. Most lenders will offer FHA loans though.
• Secure a down payment if possible to lower your interest rate and to look more favorable to the home loan lenders.
• Have stable income, and a good employment history. Do not expect to get a loan that offers a large line of credit if you cannot show proof you can actually make the payments.
• FHA administrators are encouraging (and I do too) that you look for a fixed rate loan. FHA loans offer fixed rates and the ability to refinance down the road if you decide to.

Getting a home loan is not easy right now, by any means. Most experts do not believe the mortgage industry is going to get any more flexible until the number of foreclosures slows down. This could take another year or longer to see results in. Yet, you do not have to wait too long to see a home loan. The fact is, with the help of FHA and other loan programs; you can get a good loan at an affordable interest rate.

Any potential home buyer should be concerned with the current housing market. More importantly, they should be concerned with the types of loans available to them. As a first time home buyer (or even those who have been around the block- quite literally) should realize, getting into a low rate mortgage loan offering a fixed rate should be the optimum option. I highly recommend your first contact is through an FHA loan professional. FHA, or the Federal Housing Association, provides fantastic opportunities for individuals looking for affordable loans.

However, should you invest now?

Chances are good you have heard all the worries on the national news programs:

• Credit harder to get
• The housing market continues to fall
• Home values are falling
• There is a lot of risk

Nevertheless, you may not realize that on a more local level, this is not the case. You see, when nationally televised programs are offering stats on how the housing market is doing, they are only seeing the big picture. The facts are that the local picture is much clearer and still offers fantastic opportunities for home buyer. In fact, there is an abundance of homes on the market, many of which are well priced and fully featured; meaning now you will pay less for the home of your dreams than you would have three to five years ago.

Look at a local situation closely. For example, the Port Orchard Independent, a Washington publication, offered a better look of what the housing market is really offering in their neck of the woods. There, for example, there are some excellent opportunities.

• Interest rates on mortgages are at historically low points now, making it more affordable to buy a home at this point
• Washington state banks, consumer loan companies, mortgage brokers and even local credit unions have the funds available to loan to those who have average or better credit scores.
• A variety of FHA programs are now available for those looking for a low cost way to get into a home.
• More variety in loan programs including expanded FHA guidelines make it a better time for the home buyer to get the type of home they want.
• There is a large selection of quality homes, as well as new homes on the market in most areas.
• In Washington, in particular, home values are steady, not plummeting as most news reports show.
• In fact, Washington’s economy is outperforming that of other states and the national economy as a whole

It’s Not Just Washington

While these are some facts about Washington State’s current situation, the fact is, many states are seeing the same evidence. Before you hold back on buying a home because you are worried about the national level of housing market success, look at the local point of view. You may find that the local market is an ideal opportunity for investment.

Make A Personal Decision

It is also important to make a personal decision about investing in a home now. Are you at the right place in your life to make a good investment happen?

Take a look at your current credit score and boost it anyway you can, such as paying down debt and by making payments on time. Also, be sure to pull a credit report to remove any mistakes that could be there. Improve your credit for as long as you can.

In addition to this, realize that the best programs available to you currently are likely FHA backed loans, because they provide lenders with more security and are more likely to be funded at a lower interest rate.

FHA loans are one of the most talked about today…that was until Freddie Mac and Fannie Mae started getting all of the attention. Recent share prices as evidence, the two mortgage giants are struggling and in desperate need not only of additional capital, but also more management. Freddie Mac and Fannie Mae are the nation’s top lenders, who are government-backed providers of funds for backing mortgages. Without them, the nation’s mortgage industry would wobble even worse.

The problem with these providers is that they have not had much guidance or any amount of regulation. There is new legislation working its way through Congress that will provide some relief. James B. Lockhart III has been heading this agency for some time, and throughout that, time has been calling for help. The problem, as he has said is that the two agencies are not required to hold a lot of capital, as compared to larger banks. That’s about to change…or it may that is.

The legislation provides several changes to the Federal Housing Finance Agency, which will now regulate Freddie Mac, Fannie Mae and the Federal Home Loan Banks. First, a regulator will be put in place that has the ability to raise the capital requirements. The regulator also has the ability to hold back executive pay at these companies. If the companies should become insolvent, the housing bill offers specific procedures to place the companies into receivership status. Also important is the drop in the highest level of mortgage backing that Fannie Mae and Freddie Mac can loan or guarantee to $625, 500, which is down from $729,750, which is the temporary ceiling that was put in place.

In addition to this, the legislation also offers a provision for a portion of the profits to be put into a trust fund, which is then designed to provide financing for those who qualify as low income people.

What does this mean to you, the average homeowner? Currently, it doesn’t mean a whole lot, not until it goes through Congress and gets put on the books. It should mean that more regulations would be in place to prevent the collapse of these important lending bodies in the nation.

However, for now, it is up to you to find the best loan for you, which Freddie Mac and Fannie Mae may be. FHA loans are an opportunity to get into a home loan without a lot of risk, too.

There seems to be many people, politicians and government agencies getting into the mix of fixing bad mortgages. Detroit has a new program in place to help those who are struggling to make their payments. Detroit is a city filled with problems. Large industries such as the automotive industry have moved away because of lack of profits. The city was the poorest and most unstable in the country for several years. It is no wonder a program like this would be offered to those in the city looking for a silver lining.

One program created by the Federal Department of Housing and Urban Development (HUD) will allow borrowers who have FHA loans to get help. The program allows the mortgage lender to submit an insurance claim on the mortgage. Typically, the government insures FHA loans, so lenders are less likely to face default themselves. When the borrower begins to fall behind on their mortgage payment, the lender issues an insurance claim on that loan. HUD then moves the loan to a company for servicing and works directly with the home owner to restructure the loan to make it more affordable. This initiative went in place just this month. It is designed only for those whose loans are in arrears, not those that have failed.

Is this a good opportunity for investment? From the prospect of the home owner, it can be. I say “can” because it is not always a good option for all borrowers. The problem is, if the home owner simply cannot afford the loan payments, even at the refinanced rate, it won’t help them. Yet, for many of these people, the problem is that their rates have adjusted and that is what has caused the problem. In these situations, this new FHA program may be just what these individuals need.

Why is the city doing this? There is evidence that any one city will be hurt by just one foreclosure within a neighborhood. One foreclosure may significantly cause home property values to fall significantly. Therefore, it is in the best interest of any city to consider programs that offer this amount of support.

FHA loans are helpful here and you do not have to be in default to get help. If you are struggling to make your payments, contact an FHA representative as soon as possible to get help. What’s more, remember that programs like this are showing up around the country, in many of the cities hurt the most by foreclosures.

To the average homeowner or soon to be homeowner, all of the talk about the housing bills in Congress can be confusing. At the end of July, the bill passed The House, and would mean an additional $300 billion worth of housing rescue, but what does this actually mean to the average consumer?

The goal of the housing bill is to help homeowners who are currently struggling to avoid foreclosure, a very real, life changing event that not only affects people today, but well into the future as their credit score is destroyed. In order to provide this help to the consumer the bill will provide additional support to Fannie Mae and Freddie Mac, two mammoths in the lending industry.

At Risk? Refinance?

What the bill will do is to provide people who are in the early stages of foreclosure to refinance their homes into new, more affordable mortgages. First, I would like to be sure you know that anyone can refinance their loans, at any time, assuming they qualify to do so. FHA also provides refinance options. In other words, if you are on the brink, contact FHA lenders to get your loan in place with low risk.

The bill will provide people with the opportunity get out of their unaffordable mortgage and into new mortgages, with a low cost fixed rate. The loans will be insured by the FHA, Federal Housing Administration, giving the borrower much more backing to qualify for a lower rate loan.

According to estimates provided by the Congressional Budget Office, there are about 400,000 people who have some $68 billion worth of loans currently who would benefit from this housing bill’s passage. That is a great number, but there are likely to be many more people who are struggling. The good news is that the housing bill does allow for many more to participate in the program, as many as one to two million borrowers.

The Questions Answered

Who is able to get help through this housing bill?
You will have to live in your homes and your mortgage must have been issued between January of 2005 and June of 2007 in order to qualify. You also need to be spending at least 31 percent of your gross income each month on your mortgage.

Do you have to be in default?
Homeowners who have an existing mortgage or those who are in default will qualify, but you must will have to prove that you are not just defaulting on your mortgage to get a lower payment out of the deal. You also have to prove you can’t keep paying on your mortgage for some reason.

Do Other Loans Hurt?
In addition to the above qualifications, you will also need to pay off or eliminate any other type of debt you have on your home. This includes any home equity lines of credit you may have or equity loans. Once you do this, you will be qualified to obtain an FHA backed loan for your home, again giving you the lowest interest rate possible. You will not be able to get a home equity line of credit or loan on the home for the next five years. At that time, you will need approval from FHA to get the loan, and it cannot be more than 95 percent of the home’s appraised value.

How do I get this help?
To get help from this program, contact an FHA approved lender. FHA will work through various lenders to offer this program to those who qualify. In any situation, you should seek out the help of FHA loans, as even outside this program, many people can get additional help.

I know that in recent weeks I’ve made some harsh comments about Congress being involved in trying to fix the housing market with the bill they currently have in place. The fact is, the FHA programs are outstanding and they provide help to those that can afford to stay in their homes. I stand by the fact that many homeowners who are in trouble could potentially get help from the FHA currently. In addition, should the FHA take on these new responsibilities to help those who are struggling through this bill, chances are good it is a good move for them.

Yet, what is not okay is that Congress lawmakers and politicians of the worst kind (you know, those who are really just looking to move closers to the ballot box with this vote) are getting involved. That does not bode well with me.

Back to the point…though.

If the housing bill does go through, will it rescue homeowners who are in trouble for losing their home? It could, but it is not a for sure method of getting out of the financial difficulties you are in. For example, if you cannot afford the house payment you are making now, what is to say that you can afford it in the coming months?

Essentially, distressed borrowers would be able to get refinancing from their lenders who agree to work with them with these loans. The lenders are more encouraged to do so because these loans will be federally backed with taxpayer money. They will refinance into better termed 30-year mortgages if they are in their primary home. Lenders will need to agree to cut the loan balance to about 85 percent in order for the loan to be backed.

Is this the right opportunity for homeowners, then, who are struggling?

If you are worried about your current loan, get into an FHA loan right now. If you have an upside down mortgage, try working with your lender to revalue the loan. Some are willing to avoid the cost of foreclosure. Even if the bill passes both the Senate and the House, chances are good it will not stand up to the White House Veto. In addition, perhaps it is not the right solution.

Regardless of this, if you are unable to make your current home loan payments, there is risk that you will not be able to make them later, too. This program can only help those that can afford the loans, even with FHA backing.

A few weeks ago, we talked about Congress, the Bush Administration and the FHA and a bill that was being debated. Perhaps it is time for an update on where the legislation stands.

Congress believes it has the right, and the obligation, to pass laws that would allow and even require that some $300 billion worth of troubled loans would be turned over to the FHA to manage. There is little doubt that there are risks for everyone involved in such a turnover. Nevertheless, as much as people are talking about the risks this would place on consumers, the government and plenty of other people, there has been movement within Congress regarding the process.

The bill passed throughout the House. It is now on the floor of the Senate and being debated. The bill has been expanded to now include some 1.5 million loans; most of these loans are subprime, high-risk home loans.

While the FHA is an outstanding organization and provides a lifeline to those that need it, the debate centers around one fact: should Congress step in and force the FHA to take these substantially risky loans at the taxpayer’s expense. More so, just a few weeks back, FHA announced that last year, the 2007 fiscal year, say a loss of some $4.6 billion dollars. That is the largest and most severe drop the government agency has ever seen. Yet, more risk is in order here through even more loans that are high risk?

As with everything in Congress, the Senate did make some changes to the bill. They added what is being called a modernization. This will provide the FHA with the ability to lower the amount of a required down payment by the potential homeowner while still allowing the agency to nearly double the loan limits in place. The problem I see here is that this may put even more risk on the heads of taxpayers. Tens of billions of dollars worth of risky loans could be on the taxpayer’s head. Is that the right route to take?

There is a lot of speculation as to why the FHA struggled last year. Yet, looking forward, the goal of this agency is to provide a financially sound start for those who need it. In addition to this, you have to wonder if this will help to pull the country out of its housing situation. Can one agency be called on to do so much?

Another worrisome area of the Senate’s proposal is the fact that the FHA will be able to take loans from private banks that are funding them. The problem is that these are the highest risk subprime loans, which puts additional risk on the agency.

According to Brian Montgomery who is the current FHA commissioner, the bill would strap the agency considerably. After talking about the losses from last year, he noted that the FHA would be further in the red should the bill pass Congress and be signed into law. In fact, it is not just speculation. Many of the lenders who have funded these high-risk loans are now saying that they will take the “bailout” and hand over the loans to the FHA to manage.

Reports show that people are looking for answers to their home loan needs. For many people, FHA loans are the best type of loan to fund your home, and I highly recommend that anyone that may be struggling or otherwise looking for a good deal to contact FHA lenders to find out what solutions are available to them. There is no doubt this agency has every ability to help many.

The housing industry is under an enormous strain, without a doubt. However, news is that existing home sales are up. Some real estate agents are contributing the growth in home sales to be because many home buyers are finally getting off the fence about making their investment. Since many homes are now at the lowest rates they have been in four years, the investment opportunities are simply too good to pass up, and buyers realize this.

Resale of homes and condos in the United States market have risen by 2 percent. This is a seasonally adjusted rate that takes into consideration the movement from April to May. In May, some 4.99 million homes were bought while in April, 4.89 million homes were purchased. The good news is that this is the highest rate increase since February and may signal a lessening of the worries many home buyers have faced over the last months.

Look farther back and you can see where the real numbers are. In the last year, figures are still markedly lower with a drop of 15.9 percent. Look even farther back, to the peak home sales of 2005, and the drop is much more considerable at 31 percent.

Of the homes selling, about a third of the total sales are distressed sales. These include homes that are in foreclosure (or have been foreclosed on) as well as short sales done to keep foreclosures from happening.

Inventory numbers are still high, but did fall 1.4 percent in this period. There is still a near 11-month supply on the market. Home sales have dropped in value, though. They are down 6.3 percent over 2007 to $208,600, which is a median price. The largest growth was seen in the Midwest while the Northeast rose nearly the same about. The South saw the smallest increase of all areas.

New home sales have not fared well, which has put a large strain on the economy as home builders struggle to find individuals willing to buy. The Commerce Department announced on June 26th that new home sales fell by 2.5 percent. The annual rate (seasonally adjusted) has fallen to 512,000.

As this shows, home buyers should be ready to get into the market. With home prices at historically lower numbers and interest rates quite loan, there has not been a better time in recent history to get into the market. Since many economists feel that by the end of the year the housing market will turn upward significantly, those considering purchases should make their move sooner rather than later.

To get the lowest rates and to have the most secure loans, homeowners should seek out the opportunities to buy into these markets offered by FHA loans.

You are an individual who would like to get into their first home. You are worried, even scared to get started due to the number of risky loans out there. The headlines tell the story themselves.

“Subprime Smack Down”
“Foreclosures Increase Homelessness”
“Countrywide Accused of Predatory Loans and Misleading Ads”

And, these are the nicest you have seen. The media has made the housing market even worse than it is. The fact is, for someone with decent credit, there are some of the best opportunities available, especially those who qualify for FHA loans.

Look at the facts.

#1. Home inventory numbers are at the highest they have been in recent memory, which means there are plenty of homes to select from if you are ready to get into them. If you have been on the fence, now is the time to jump off.

#2. Interest rates are at record lows. The Fed recently announced that they would keep interest rates at this historically low point for this quarter (2 percent prime lending is not very bad at all.) In other words, these home loans are inexpensive.

#3. It is a buyer’s market. There is no doubt about it, cheap homes are out there in record numbers. Housing prices have slowly fallen to levels as low as 31 percent of their record high numbers in 2005. They are not likely to continue to fall much farther, many economists say.

For those considering buying a home, there are aspects to worry about. For example, many home buyers are rightly concerned about the risks of getting into a loan that is not stable, too costly or even worse, working with a lender that may go under. Those are important worries, but an FHA loan may help to put your worries aside.

In record numbers, FHA has been helping home buyers to get into more affordable loans. There is no reason to worry about lending when you have this government-backed loan for your home. Moreover, FHA loans are even more affordable than those that are conventional. They are more readily available too, since you do not have to have a large down payment or a perfect credit score to get into them.

The headlines you see are worrisome for many reasons. In addition, while there are risks with some lenders and with those in subprime loans, there are still opportunities available to homeowners who are looking for new opportunities. If you are considering the purchase of a home, get into it through FHA.

There are many ways to look at the current bill in Congress that would allow FHA to take on some of the most risky loans. While I have not been very positive about this situation, if it does happen, what should the average homeowner expect and what should you do to get help?

First, if you are in a situation and need help, do not wait for this bill to pass. Instead, call on FHA as soon as possible. Find out what solutions they may already have in place to help you out of your worrisome mortgage and into a safer one. Many homeowners who are struggling to make ends meet are seeing that they do not have to lose their homes to foreclosure. Instead, they can take advantage of the programs already in place through FHA to get into a more affordable loan.

Granted, not everyone qualifies right now for this opportunity. Let us say you do not qualify for an FHA loan right now. What do you do should Congress pass this bill?

The first step to take is to talk to your mortgage lender about the options they are giving you. Yes, you hate when they call and the pressure they put you under. One thing is for sure: if this bill goes through, you will need to put some pressure on your mortgage lender to put your loan into consideration for help from FHA.

If you do not get the help you need from your mortgage lender, the next best move for you to make is to contact FHA directly or through another lender offering FHA loans. Many lenders will be more at ease to pass off these loans onto the FHA especially if they are high risk. Therefore, it may be your opportunity to make your move.

There are a few things to avoid.

#1: Do your best to stay in the loan right now, making payments as much as possible. Do not assume that you can just forget about your monthly payment. You should be actively trying to make it.

#2: Do not ignore your current lender. Should the bill pass and your home be in foreclosure to far, you may be out of luck anyway. Therefore, work with your lender. They have more solutions now then they had in the past.

Mortgage help is available to many people currently. If you have not done so yet, find out if an FHA loan can help you. You may be shocked to find out it is just the right opportunity.