Oil executives were summoned to the Senate today to discuss the rise in prices of oil.  The Oil Executives defended prices stating that prices are set based on supply and demand.  They stated that supply was tight and demand is up across the world causing prices to increase.

The Senate’s stance was that Americans were hurting in the pocket book as the average cost to fill up the gas tank is $60 and the big Oil Companies are generating record profits, $36 billion in just the first quarter of this year.

It’s ridiculous that these Oil Companies are generating these type of profits when the average person can barely afford to cover their monthly expenses as the price of gas, food and utilities keep rising!  When will the government step in and demand the Oil Companies make changes to drive down the cost of gas?  When will the government force Saudi Arabia to produce more oil?  Something needs to change and quickly, we just cannot afford to keep paying these prices for gasoline!

Since the mortgage industry is consistently changing their programs, it has been difficult to keep your borrower qualified and get the loan closed. By the time you submit the loan and you schedule a signing, a million things can change and that causes lots of issues for everyone involved in the transaction.

FHA has proven to be a solid program for those who are looking to purchase or refinance. The interest rates are a little better then conventional pricing on a 30 year fixed. There is a 3% minimum down payment requirement that can be a gift of equity or the buyer can use the down payment assistance program. The seller is also allowed to contribute up to 6% seller concessions. This makes it easier for those clients who don’t have a lot of money to bring to the table.

If the home is in rough shape and needs to have repairs that is not a problem for FHA. There is a program that will allow the purchase of a home in need of repairs and not require the repairs to be done prior to closing. They will lend the purchase price and the amount needed up to $35,000 (I will have to double check that figure) for repairs to the home. It is a strong program for those homes that have been let go and the owners don’t want to put the money into the property before they sell it. Especially works well for REO’s.

If you want more information on FHA financing, please don’t hesitate to contact me.