The rise and fall of FHA loans
Quite often I get asked if seller's are accepting offers with FHA or VA financing. I never discourage a buyer who is qualified to buy a home regardless of the type of financing they have chosen (or has chosen them), but it piqued my curiosity as to how home purchases were financed this past year. The results surprised me, as the number of FHA loans were much lower in 2013 than in previous years.
FHA loans became a popular choice in Sonoma County shortly after the market began to tank in February of 2007. After several months of sudden market paralysis, FHA became the new subprime loan and they took off like wildfire. Here's how the numbers shake out.
It will be interesting to note how many new FHA loans originate in 2014, but I see a trend in my area. With FHA loans becoming less and less desirable with higher up front mortgage insurance premiums and lifetime PMI's, I'm going to call this trend ... The rise and fall of FHA loans.
Broker/Owner - Safe Haven Realty
Sonoma County, California, USA