More FHA loans were originated in June than ever before.
FHA guaranteed almost 186,000 mortgages in June, a monthly record for the agency in its 75-year history. The total number of FHA loans originated last month surpasses the previous record of 157,000 set last October. Having never crossed the $40 billion threshold in a month’s span, the mortgage association issued $43.5 billion in mortgage-backed securities in June.
Currently nearly 36% of all mortgage applications are FHA loans and are guaranteed by Ginnie Mae, a government backed agency.
With conventional loans becoming ever more difficult to obtain (They now require a 720 credit score & minimum of 10% down payment), and alternative loan products having disapeared in recent months many borrowers have turned to FHA.
FHA is not strictly a first-time homebuyer program, but with low down payment requirements (3.5%), and flexible credit & qualifying factors, it has definitely become the program of choice for first-time homebuyers as well as seasoned homeowners looking to make a move.
One cause for concern is that the percentage of seriously delinquent loans has risen in May to 7.42% from 6.47% just one year ago. Taxpayers are ultimately responsible for the bad loans & could end up footing the bill in the long run.
Please call me if you are in the market for a home loan. I can get it done!!
I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housing loans inside & out and would love to answer any questions you might have.
I can be reached at the following: