Important FHA Home Loan Facts

AZ FHA Mortgage Changes

I wanted to follow-up on yesterday’s post on the important upcoming FHA Changes to share a few significant statistics that were released int the Annual Report to Congress (released November 16, 2012).  So in a sort of random/bullet point manner here are some of the facts/figures that caught my attention in the report:

  • FHA insured 1.2 million single family home loans in 2012 (FHA has now financed over 40 million homes since its inception)
  • FHA closed $213 billion in single family home loans in 2012
  •  78% of the FHA purchases closed in 2012 were for first time home-buyers
  • During the past 4 years FHA has financed 2.8 million homes
  • FHA’s market share has decreased steadily since 2009
  • In the 1st quarter of 2008 23% of all FHA loans were granted to borrowers with credit scores between 300 and 579
  • In all of 2012 only .3% (basically 0%) of all FHA loans were granted to borrowers with credit scores between 300 and 579
  • Seller funded down payment FHA loans account for 4.3% of total outstanding FHA loans
  • Seller funded down payment FHA loans account for 13.1% of all seriously delinquent FHA loans
  • Early payment defaults on FHA loans originated between 2007 and 2009 (“old loans”) stands at 1.7%
  • Early payment defaults on FHA loans originated between 2010 and 2012 (“new loans”) stands at .4%

History of FHA Changes (for 3.5% down loans)

Monthly mortgage insurance changes:

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%

Down payment changes:

10/04/2010 – Loans to borrower with a credit score below 580 require 10% down (hardly any lender offers this product)
10/04/2010 – Down payment increased for all other borrowers 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.  If you have any questions please do not hesitate to contact me.

By Jeremy House
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