Editor’s note: The following is a reader comment in response to an Aug. 18 Inman News story, "Buyers flock to FHA, government-backed loans."

Editor’s note: The following is a reader comment in response to an Aug. 18 Inman News story, "Buyers flock to FHA, government-backed loans."

"I am not surprised that conventional financing is down as significantly as it is. Fannie and Freddie have started to charge significantly more for lower credit scores. Not bad credit — just lower scores. It does not take much to figure out they are simply profiteering off the consumer. Lenders will send buyers to FHA loans when they make more sense. Fannie and Freddie must not realize buyers do have choices. They are getting less market share based on their tactics.

"As far as DPA goes, the new bill (even if it does pass) won’t make much difference if the investors who buy FHA loans decide not to buy them with DPA, which we are starting to see. Much work to be done before this all settles out." —Lonny Coffey

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