"Number of Fed-backed (FHA) troubled mortgages rises" BUT road is paved with yellow bricks...

Yes, the Wizard is in town and is able to grant the ability to buy a home in today's market. Will you be the one to click your heels and utter "There's no place like home??"

While the below post from the LA Times indicates FHA troubled mortgages are on the rise, the fact remains that it's still going down in history as possibly one of THE BEST TIMES to be a first time homebuyer. The cost of housing is depressed, likely to bottom out in the 3rd quarter and that simply means a first time homebuyer will be able to buy more house for less money and on their current income level.

I think we should focus on the fact that with several incentives in place, and lower than 5% interest rates, will really spark a movement for first time homebuyers to come out of the woodwork and start a trend in buying in coming months. One large trend is found in single women are buying homes in record numbers, according to a recent report from the National Association of Realtors. Seems like there are many "Dorothy's" realize there's no place like home (ownerhsip). :-)

The incentive to buy is further supported by the $8000 Tax Credit that is available to all first time homebuyers (definition: haven't owned a home in the last 3 years) that doesn't have to be paid back and is good for anyone buying between January 1, 2009 and December 1, 2009.

In addition, Fannie Mae's Homepath program (stay tuned for a video on this gem of a program) allows anyone to buy a Fannie Mae-owned home (home that has been foreclosed upon and returned back) with as little as 3% down, no Mortgage Insurance required and NO APPRAISAL REQUIRED as well. This program allows for up to 6% seller concessions on primary, owner occupied purchases.

This program is also WONDERFUL FOR REAL ESTATE INVESTORS: an investor can buy a Homepath home for as low as 10% down, allows 2% seller concessions, Requires NO MORTGAGE INSURANCE and again NO APPRAISAL. My broker I partner with at the mortgage company has just saved 2 deals alone in the last 3 days because of this program and put another single woman into a house, when the deal was previously thought dead. How's that for the mortgage wizard granting her wish?

If you have any questions, please as always, feel free to contact me on my cell (360) 597-8283, Twitter, or send me a message through here.

Best wishes today!

Ed Bisquera "The Mortgage Matchmaker" & Web 2.0 Evangelist :-)

P.S. I just posted 12 listings on Craigslist this week and using tried and true techniques and existing programs marketed with a twist. I was able to get 3 buyer leads in less than 24 hours, and convert one into a buyer with an 4.375% (4.6% APR) FHA mortgage to this first time homebuyer. Message me and I'll tell Realtors and homebuyers how this works IN ANY AREA OF THE COUNTRY. Ed B

== Number of Fed-backed troubled mortgages rises ==

The mortgage woes of FHA borrowers are gaining ground. From an Associated Press brief at latimes.com:

The government says the number of troubled loans backed by the federal mortgage insurance program is on the rise as economic troubles mount.

However, Housing and Urban Development Secretary Shaun Donovan is telling Senate lawmakers Thursday that the Federal Housing Administration is "unlikely to face the catastrophic losses borne in the subprime sector." He says in prepared remarks that that is partly because it didn't back loans for more expensive properties that have plummeted in value.

As of February, 7.2 percent of loans backed by the FHA were either 90 days overdue or in foreclosure, up from 5.8 percent last August.

The FHA is the main source of home loans to borrowers with poor credit and low down payments after the subprime lending market's collapse.

I'd be curious to know what percentage will qualify as a "catastrophic." The trend line sure doesn't look good.

-- Lauren Beale

Thoughts? Comments?

Photo: Housing Secretary Shaun Donovan, left, Treasury Secretary Timothy F. Geithner and FDIC Chairwoman Sheila Bair gather at Dobson High School in Mesa, Ariz., for President Obama's recent unveiling of his plan for preventing home foreclosures. Credit: Gerald Herbert / Associated Press