FHA Mortgage Guide

According to the Mortgage Bankers Association, the FHA delinquency rate dropped from 13.46 percent to 12.15 percent in the first quarter of 2007. For subprime loans, the delinquency rate was pegged at 13.77 percent, up .44 percent.

The FHA foreclosure rate held steady at 2.19 percent while the foreclosure rate for all loans was 1.28 percent, up from 1.19 percent.

What do such numbers mean?

The FHA loan program is doing well. It’s not expected to have a low delinquency or foreclosure rate because it’s reasonably accessible to all borrowers, including those who might not qualify for other programs.

Alternatively, the FHA demands real loan documentation from borrowers and does not offer interest-only or option ARMs. FHA loans represent far less risk than the toxic financing offered outside the government program.

Check out these FHA resources for more information

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