Since the housing bust began, FHA lending has soared to account for 20% of the total dollar volume in home loans – up from just 3% in 2006.
There were 384,451 home purchase loans issued during the first two months of 2009, nearly four times the pace of 2008 when 631,649 were issued, and far more than the 278,393 issued for all of 2007. The number of authorized FHA lenders skyrocketed 500% over the past two years.
FHA loans are especially attractive for homebuyers with steady incomes who cannot scrape together a 20% down payment because FHA lenders will finance up to 96.5% of the home price. [via CNNMoney]
FHA does limit however, the amount that can be borrowed, based on area home values. Check the cap limits in your home town here >
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!
Leave a Reply