What's Your

Are you thinking of selling your home? Get a free evaluation and market analysis of your home with absolutely no obligation.

Get Valuation


Use our Interactive Map Search tool to view properties directly on the map. Easily view listings in your favorite neighborhoods.


New Listings

Get alerts of new properties meeting your search criteria delivered right to your inbox. It's FREE and you can cancel at anytime.

Sign Up
FHA Programs

The Department of Housing and Urban Development (HUD) was formed in 1965. The Federal Housing Administration (FHA), whose primary responsibility is administering the government home loan insurance program, operates under HUD and provides a way a first time home buyer, who may not qualify otherwise because of the risks involved for the lender, to obtain a loan by insuring the loan and reducing the risk for the lender.

The 203(b) home loan program is by far the most popular FHA program for the first time buyer. This loan requires a minimum of 3.5% from the borrower and is a standard fixed rate loan for 1-4 family owner occupied housing. Another feature of this loan is it allows 100% of the funds needed to close to be gift(s) from family, a government agency, or a non-profit organization
Another feature is that the borrower's allowable costs can be partially wrapped into the loan, meaning the "traditional" closing costs (non-allowable costs) will be paid by the lender or seller. FHA debt ratios typically exceed Conventional ratios, which may allow borrowers with less income to qualify for the loan.

First time home buyers are not the only borrowers who can benefit from FHA home loan programs. Securing an FHA home loan of a second or even sixth home purchase or refinance is allowed for under FHA guidelines. Refinancing of a current loan DOES NOT require the current home loan to be an FHA loan.

FHA limits the loan size a borrower can borrow. This is probably the biggest disadvantage of an FHA loan. The FHA upfront Mortgage Insurance Premium (MIP) is considered by some to be another disadvantage; however, it is a very small amount of a monthly payment and, in certain cases, may be partially refundable.

Q & A

Who might choose an FHA-insured loan? 

If one or more of the following characteristics apply to the borrower, an FHA-insured loan could be a strong consideration.
- The borrower has limited money for a down payment. 
- The borrower is first-time homebuyer. 
- The borrower has less than perfect credit. 
- The borrower does not want monthly payments to increase. 
- The borrower is concerned about qualifying for a loan. 
- The borrower wants to keep monthly payments as low as possible. 
Source: HUD

If any of the following list describes the borrower, then an FHA mortgage loan may be the right choice for that borrower. 
Why? A level of scrutiny and many other benefits not found in other loans are offered in an FHA-insured loans.
They include the following:
- FHA-insured loans are insured by the federal government and that, in turn, keeps interest rates competitive. (Lower cost for the borrower) 
- FHA-insured loans feature a 3.5% down-payment that can be in the form of a gift from a relative, charitable institution or an employer. (Smaller down-payment) 
- FHA-insured loans may be more attractive to lenders. Because of FHA insurance, lenders may be more willing to give loan terms that make it easier for the borrower to qualify. (Easier qualification) 
- FHA-insured loans help to reduce the risk factor for the lender over conventional loans. If the borrower has credit issues such as a bankruptcy, qualification may be easier for an FHA-insured loan rather than a conventional loan. (credit issues may not be a problem or difficulty) 
- FHA-insured loans may offer more options to avoid foreclosure and keep a borrower in his or her home. FHA has been helping borrowers since 1934 who buy homes and then encounter financial adversity. (More home protection for the borrower)

Legislative Reform Impacted Mortgage Lending 

Legislation reform and mandates of governmental and quasi-governmental institutions have been important influences on mortgage lending in recent history. For example, the creation of the Federal Housing Administration in 1937 and the Federal Home Loan Bank system being created in 1932, helped expand borrower mortgage lending and in some opinions, helped create the modern mortgage lending market of today. Around the beginning of the 1980s, mortgage lending was in such a disarray, the Savings and Loan associations processed conventional loans, mortgage bankers provided the governmental loans, and brokers handled the remaining products which included second mortgages and loans that involved higher credit risk.

Prior to 1980, Regulation Q restricted institutional lenders with interest rate ceilings on their deposits.

In the late 1970s, the inflationary environment created a gap between assets that generated income and short term funding costs that was unsustainable. 

Savings and Loans had previously provided for economic stability.

As we know from history, depositors left Savings and Loans as inflation increased and moved to higher yielding possibilities outside of the banking system. This resulted in the creation of the Depository Institutions Deregulation and Monetary Act of 1980, phasing out Regulation Q over a six year period. It also allowed for the creation of the money market deposit which enabled competition between brokerage firms and FDIC insured institutions for wholesale funds. This did allow Savings and Loans to retain deposits, but it stopped the continued favored status they held in the mortgage lending market. 

In 1982, the Alternative Mortgage Transaction Parity Act was enacted which removed regulatory differences between state chartered and federal charter banks. This was done by granting state chartered institutions the ability to offer alternative mortgages which included using balloon payments and variable interest rates regardless of the mortgage lending laws in the States. Passage of this legislation helped increase the supply of mortgage lending credit.

Further stimulating the demand for mortgage lending was the Tax Reform Act of 1986. This was done by keeping the deduction for mortgage lending interest, but eliminated deductions for non-mortgage consumer debt. (automotive loans, education loans).

What has been the Impact of Mortgage Securitizations?

After Regulation Q was eliminated in the 1980s, the weight of mortgage lending dramatically shifted from savings institutions to government sponsored enterprises (GSEs) and banks which then helped greatly in the development of mortgage backed securities (MBSs). 

Further opening the US mortgage lending market to investors, these securitizations introduced new liquidity, and by the year 2005, nearly 68% of home mortgage lending loans were securitized, which helped shift the risk on mortgage credit to the investors.

"Innovation" in Mortgage Lending Products 

The US mortgage lending market was previously dominated by fixed rate mortgages. Due to "innovation", over the years, it included:
- Non-traditional mortgages 
- No-documentation mortgages 
- Low-documentation mortgages 
- Simultaneous second lien mortgages (piggyback) 

These non-traditional mortgages often allowed the borrower to push back the payment of principal and occasionally the interest on the loans with "more flexible" payment options, interest only loans and adjustable rate mortgages.

The late 1970s and early 1980s created various types of ARMs due to high fixed rates that were record breaking. At the time, these and other loan products may have been perceived as "new", but many simply repackaged existing loan products. Due to demand, these products were marketed again in the 2000s.

So in Conclusion...

Cycles in mortgage lending have changed significantly over the last several decades. Unlike other lending products, mortgage lending has been modified by product creation, governmental influences, and rapid home price fluctuations, which contributed to the demand of non-traditional mortgage products. 

These patterns in mortgage lending lead to unnecessary risk to the borrower, lender and investors. In fact, in some situations, it may have encouraged higher risk taking.

As we have experienced, even though there was strong product movement, the rise in foreclosure rates and inability to make financial obligations have risen in history. In addition, some borrowers have chosen to selectively default, deciding it would be better to leave a property, rather than wait for a rebound in property values.

Some borrowers, having lower income or an inability to acquire refinancing options due to home price values or lower credit ratings, have not had success in making their mortgage lending payments.

What our clients are saying  

“I would highly recommend Kelly to any of my family and friends. She is the person you want to help you when make a life decision such as this.”


~ Abigail, San Antonio, TX

“Kelly knew what had to be done to sell the house. I had another agent for 8 months prior and never had any offers. Kelly did great and worked hard to make this happen."


~ Dianne W

“Kelly's personality, work ethic, and ease of working with Kelly was the true reason we hired her!”


~ Eleanor Rodriguez, San Antonio

“We had another broker but were very dissatisfied. A friend told us to give Kelly Ann Cameron a try and we knew from the 1st meeting that she was going to be successful in selling our home. Very positive and upbeat about things. Gave very good advise on staging and making home look more welcoming therefore getting people interested in our home. Every thing Kelly did for us was on point! Great person!”


~ Catherine Delgado

“It was a pleasure to work with Kelly as my realtor. I greatly appreciate the time she took to ensure that I was well aware of all parts of the buying/selling process and making sure I understood the lingo. She was able to answer all of my questions and made sure I had an enjoyable experience. I highly recommend Kelly Cameron as a realtor!”


~ Logan, San Antonio

“Have worked with Kelly previously on multiple sales and purchases. Also recommended them to family and friends. Everyone was more than satisfied. Kelly always goes above and beyond, is patient, responsive, and really does care. She is never pushy, and will show as many houses as we could stand to make sure we got the perfect home for us. Kelly wants what's in my, buyers, best interest, bottom line. Ensures we are happy with the price and that we are happy with our purchase. Great negotiater - no home is perfect so we able to get items repaired to minimize our effort when we move in. Patient and cares about what we want as opposed to "making the sale". Kelly was extremely responsive and always took my calls/questions or got back to me quickly. I never had to call twice. If I had a question or concern she found out immediately. Took a lot of the burden off our shoulders.”


~ Rick I, Spring Branch, TX

“Kelly was a real pleasure to have as our agent. This was our first home buying experience. I was impressed by her recommendations and willingness to educate us on everything from soil erosion to home maintenance. Kelly was responsive, patient, professional and a lot of fun to be around. She was with us every step of the way and had our best interests in mind.”


~ Shina and Frank Haefeli

“Kelly sold us the home to begin with. She is pleasant to work with, knowledgeable, caring, trustworthy and accessible. I would highly recommend her.”


~ Karen Lindstrom

“Kelly has plenty of experience and is concerned about her customer needs and wants first. She is professional, easy going, knowledgeable, and very hard working. I would recommend her to anyone listing or buying a house.”


~ Cynthia Navarro

“Kelly is fantastic! She did a great job from the moment we hired her and well after closing. She went above and beyond to help us sell our home. Very friendly and professional. I would most definitely use her again and I will be referring to her friends and family.”


~ Selena Bocanegra, San Antonio, Texas

More Reviews

Want to Know How Much Your Home is Worth?

Get Your FREE Home Market Analysis Report Right Now!