dcsimg

FHA Marketplace Is Booming

by Peter G. Miller
July 9th, 2007

While much of the mortgage market is in shatters, the FHA program is booming.

Figures for the first half of June show amazing growth:

*Seasonally adjusted, the annual rate for applications was 867,500 — a 12.4 percent jump from the prior period and the best rate since March 15, 2000 — that’s 7 years ago.

*Actual applications received totaled 39,965 — 10.1 percent above the May 1st reporting period.
*During the reporting period, 24,197 mortgages were insured. Of these, 13,065 were used to purchase a home, 7,135 were for refinancing and 3,997 were reverse mortgages.

*Among purchasers, 8 out of 10 mortgages were for first-time.

*Only 15 percent of the refinances could be handled with streamline procedures. The reason: Most of the refinances had to be fully processed because they involved cash outs.

*A little more than 9 percent of reverse loan borrowers got an HECM to refinance. In other words, their homes were not owned free and clear.

What these numbers say is that the utility and safety of the FHA program is gaining wider attention by both borrowers and lenders.

  •  | 
  •  | 
  •  | 

 

This entry was posted on Monday, July 9th, 2007 at 1:55 am and is filed under . 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.

Leave a Reply

Are you a Mortgage Lender specializing in FHA Loans? Join our mortgage directory today! Homeowners click here to appy for FHA Loans