Real Estate

The good, bad and ugly of FHA loans

By From page HS3 | December 13, 2013

I spent much of the day after Thanksgiving in my garage untangling last year’s Christmas lights and taking down the decorations from their perch in the garage. While replacing bulbs and wrestling down boxes, I was listening to a radio infomercial on FHA mortgages. The talk-show host was bloviating about all the benefits of a FHA mortgage. What I heard was technically correct. FHA allows a borrower to finance a home purchase with only 3.5 percent down payment, their credit score need only be 640 or better and underwriting is more flexible than conventional Fannie Mae. I did find the program a bit misleading. While the mortgage person did a good job of explaining all the benefits of a FHA loan, he did not discuss their serious side effects. Today’s Full Disclosure column will.

Subscription Required

Thank you for reading the digital edition. In order to continue reading this story please choose one of the following options.

Current Subscribers
If you are a current subscriber and wish to obtain access to, please select the Subscriber Verification option below. If you already have a login, please select "Login" at the lower right corner of this box.

Subscriber Verification

Special Introductory Offer
For a short time we will be offering a discount to those who call us in order to obtain access to and start your print subscription. Our customer support team will be standing by Monday through Friday, 8am to 5pm to assist you.

Call and Save! (530) 344-5000

If you are not a current subscriber and wish not to take advantage of our special introductory offer, please select the $12 monthly option below to obtain access to and start your online subscription


Ken Calhoon

  • Recent Posts

  • Enter your email address to subscribe and receive notifications of new posts by email.

  • Special Publications »

    Use of this site constitutes acceptance of our Terms of Service (updated 4/30/2015) and Privacy Policy (updated 4/7/2015).
    Copyright (c) 2015 McNaughton Newspapers, Inc., a family-owned local media company that proudly publishes the Daily Republic, Mountain Democrat, Davis Enterprise, Village Life and other community-driven publications.