Changes are coming to FHA loans. Do you think it would be wise for Home buyers to use the FHA loans?

Changes are coming to FHA loans (Federal Housing Administration Loans).Let me ask you:  Do you think it would be wise for Home buyers to use the FHA loans?

Congress is expected to approve House Resolution 5072 or better known as the FHA Reform Act of 2010. Many lenders of the mortgage finance industry are concerned that HR 5072 part of the provision of this law is geared towards, cracking down on lenders who are approved by FHA. These lenders are concerned that the law would do more harm than good. What are your thoughts?

I am all for regulations if they benefit the Real Estate in a responsible way. I am not for regulation for the sake of regulation.  I am concerned that the buyers who use FHA have generally lower FICO scores (credit scores), less financial means to save up to 20% for a conventional loan down payment. Hence they will have less means to save and survive catastrophic situations such as job loss or medical issues. So I am afraid that the future FHA buyers will be set up for failure and we are creating the next Real Estate crisis. Join the discussion and tell me if I am off base.

  If you are a consumer  who is considering buying  or selling  a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com  or visit one of my websites at https://www.endrebarath.com  Your Pet Friendly Realtor. I contribute a portion of My commission to Local Animal Rescue Organizations.