Unless you have been living in a cave or don’t come into contact with people on a daily basis then you know that America is having pretty tough economic times. Both the current Obama administration and the previous Bush administration have been addressing it by expanding the Fort Lauderdale area FHA Home Loan programs.

FHA mortgages are feeding the purchase market in Fort Lauderdale. Why? Because, conventional financing has dissapeared. No longer are there programs that will allow you to buy with “No Money Down”. The 2 large companies that wrote the rules on how to lend were government sponsored agencies are Fannie Mae and Freddie Mac. During the real estate boom of the 2000′s, these two companies drove the market up. They became riskier as the years went buy because of the lack of oversight, greed, corruption within the ranks, and more importantly the demand for mortgages.  Their lack of properly reviewing the borrowers credentials to afford a home led to their ultimate demise and the US Government bailing them out and taking over.

Now, how does that affect us down here in Fort Lauderdale and the rest of South Florida? Well it means that the only mortgage to be had is an FHA mortgage. Well…that is not completely accurate. It just depends on a combination of credit, down payment and proof of income. Their is always an exception to the rule.

Basically, as stated in previous posts, lending is becoming exactly like the motto for the state of Missouri. Banks and lending institutions have become the show me state. For many people in Fort Lauderdale that can not prove their income, are in the hospitality Business, or choose to hide their income through their companies, they will have more limited opportunities. For the people in Fort Lauderdale and the surronding areas, that choose to prove their income. Their is alot of opportunity to get a nice piece of Real Estate.

You better hurry though. This will not last forever. If you are looking to make a move but are waiting for the bottom of the market, you could miss the opporunity you have been waiting for.

Tags: FHA, Fort Lauderdale, fort lauderdale loan

This entry was posted on Monday, March 23rd, 2009 at 6:23 AM and is filed under Fort Lauderdale Loan FHA, Intrest Rates, Real Estate Homes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.