5 good reasons to "HURRY UP" and get your FHA Mortgage Loan today!!!

1) Limited Funds. There is a certain amount allocated each year by congress and getting additional funds allocated in the 4th Quarter to off set shortfalls is HIGHLY unlikely giving the on-going battle over deficit spending. With the increased demand for FHA loans brought on by QRM (Quantitative Risk Management) which is looming and likely to happen there will be an increased demand for FHA Mortgages for their lower down payment requirements. Increased demand for something with limited supply forces prices higher. In short; the 4th Quarter of 2011 could see far less and far more expensive financing for those with less then 20% down.

2) Limited Funds. The FHA does not have sufficient reserves so they increased the amount of their MIP (Mortgage Insurance Premiums) to increase reserves except they set it up to target long term shortfalls and forgot to increase their up front premium leaving themselves once again with a current and immediate shortfall. This makes it almost certain that another increase in MIP is on its way this year.

3) Limited Funds. The FHA is rumored to be looking at tightening their lending guidelines to off set the short falls. Higher down payments from 3.5% to 5% and reduced seller paid concessions down from 6% to 3% is the rumored possibilities.

4) Limited Funds. The present loan limits will be slashed. Presently, FHA will insure loans as high as $729,250. in high cost areas. Look for loan limits to be reduced by a minimum of $100,000.

5) FEDS will increase Interest Rates as inflationary presure mounts. Higher gas prices add cost to nearly everything else we buy. Higher interest rates make buying a home less affordable and that results in fewer home sales at lower prices.