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The last few years were very interesting to say the least for FHA home loans. In fact, so interesting that you should know about what has occurred. In addition the post on important upcoming FHA Changes, below are facts released in the Annual Report to Congress (released November 16, 2012).
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FHA by the Numbers
In the rapidly evolving mortgage world, FHA changes are atop the list as the most eye opening. Most noteworthy are the stats that highlight the shift in FHA volume and defaults. For example:
- 2012
- FHA insured 1.2 million single family home loans
- $213 Billion FHA single family home loans closed
- First Time Home-Buyers made up 78% of the FHA purchases
- 2008-2012 – FHA financed 2.8 million homes
- FHA’s market share steadily decreased since 2009
- Q1 2008 – 23% of FHA loans were for borrowers with credit from 300 to 579
- 2012 – 0.3% of FHA loans were for borrowers with credit from 300 to 579
- At Present seller funded down payment loans account for 4.3% of all outstanding FHA loans
- At Present seller funded down payment FHA loans account for 13.1% of all seriously delinquent FHA loans
- 2017 – 2009 – 1.7% of all FHA loans originated in this time-frame were early payment defaults
- 2010 – 2012 – 0.4% of all FHA loans originated in this time-frame were early payment defaults
History of FHA Changes (for 3.5% down loans)
Monthly mortgage insurance changes
Over the past few years FHA changed mortgage insurance factors. For example:
- 10/04/2010 – raised factor from .55% to .9%
- 04/18.2011 – raised factor from .9% to 1.15%
- 04/09/2012 – raised factor form 1.15% to 1.25%
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Team@JeremyHouse.com
602.435.2149
Down payment changes
Much like mortgage insurance factors, FHA changed down payment requirements in 2010.
- 10/04/2010 – Borrowers with credit score below 580 require 10% down
- 10/04/2010 – All other borrowers down payment changed from 3.0% to 3.5%
As you can see it has been a wild ride with FHA. I will be sure to keep you posted as the world of FHA mortgages continues to be reshaped.
By Jeremy House
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