| Every morning and several times during the day there | | | | If you do not fit into the new tighter conventional |
| is a new headline trumpeting the meltdown of the | | | | mortgage guidelines because of credit problems or |
| mortgage industry. Obtaining a conventional mortgage | | | | because your home's value has not risen as quickly as |
| is becoming more difficult by the minute. Qualification | | | | you planned, there may be a very good option if your |
| guidelines are tighter than they have been in years. | | | | loan amount is below $252,890 in more populated |
| This meltdown is occurring at the same time a record | | | | Georgia counties and $200,160 in more rural Georgia |
| number of adjustable rate mortgages are set to begin | | | | counties. That solution is to use an FHA loan. |
| their rate adjustments. Because these ARMs usually | | | | FHA loans allow you to refinance with higher ratios of |
| had initial teaser rates that were artificially low, if you | | | | debt in relationship to your total income. FHA loans |
| have an adjustable rate mortgage there is a near | | | | allow you to get a mortgage even with credit |
| 100% chance that your rate will be going up. Most of | | | | problems as long as you have a good explanation and |
| the time, this first rate adjustment will be several | | | | the problems have been solved or the new mortgage |
| percentage points. It is not uncommon right now for a | | | | will help solve them. FHA loans also allow a loan |
| mortgage that has had an interest rate in the low 5's | | | | amount that is as high as 97% of the value of your |
| to be adjusting up to the 8 or 8.5 percent range! If you | | | | home if necessary. |
| have a subprime loan, this increase may be from 6.5 | | | | Don't just give up if you currently have an adjustable |
| percent to 9.5 percent or more! Borrowers who are | | | | rate mortgage and you know the payment is about to |
| unprepared for this will have their mortgage end up as | | | | go up. Call a HUD approved FHA lender to find out if |
| part of the delinquency rate statistics talked about on | | | | this very good option is open in your situation. You |
| the evening news. | | | | may be very glad you did. |