FHA Loans

July 2nd, 2009

In March, we wrote a post that, in part, discussed what distinguishes an appraisal for a Federal Housing Administration (FHA)-insured loan from an appraisal for a conventional loan and explained that the appraisers at Present Value are certified to conduct appraisals for both types of loans. Click here to read the full post.

This week, The New York Times published an article discussing the effect that FHA loans currently are having on home sales. The article says that three years ago, FHA-insured loans made up 2% of the market and now, 25% of the market is backed by FHA-insured loans. That’s a huge jump in a very short amount of time. Clearly, the FHA’s plan to help potential buyers secure financing is working.   

Traditionally, FHA-insured loans were obtained by people with less-than-perfect credit scores. Banks were more comfortable lending to riskier borrowers if the loans were insured by the government because the bank would be protected from a loss should the borrower default on the loan. But because financing is so difficult to secure right now, people who would have gone after a conventional loan in the past now have to look into FHA-insured loans to receive the financing required to own a home. To read the full article and see how this trend is affecting New Yorkers, click here.

By: Present Value

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12 Responses to “FHA Loans”

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  3. FHA Secure Loan Says:

    The financial crisis has practically swept the entire world, affecting both large and small economies. The American economy has not been spared from the battering, and it has inevitably shown in the rising unemployment rate, and as a consequence, the number of people getting further buried in debt and losing their houses to foreclosure increases.

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  10. rick carrier Says:

    Can you provide more information on this?

  11. rick carrier Says:

    I found this information very interesting and I am looking forward to more posts!

  12. Government Grants Says:

    Hey. I’ve been reading on your blog for a while, do you have a mobile version of your website? I would love to be able to read on your blog with my blackberry ;)

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