FHA Mortgage Guide

Here are two numbers to keep in mind.

First, last year there were more than 1.2 million homes in the “process” of foreclosure, according to RealtyTrac.

Second, the FHA expects to refinance 100,000 conventional loans this year.

Converting from some of the looney loan formats which have been around for the past few years to FHA financing makes a lot of sense. Borrowers get the thrill of sensible rates, avoid ruinous resets and sleep better at night.

But the number of owners facing foreclosure — both those who are delinquent and those who are not — is growing. Moreover, with a rise in interest rates FHA lenders could face lines around the block as borrowers hunt for mortgage relief.

I bring this up because a growing part of the FHA portfolio is now composed of conventional refis and reverse mortgages. In an odd sort of way, it looks like FHA — troubled in recent years by tough competition — is now working its way back into the hearts and minds of borrowers.

This is a good thing for the FHA, and a good thing as well for borrowers.

Check out these FHA resources for more information

This entry was posted on Tuesday, June 12th, 2007 at 7:16 am and is filed under FHA. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.