Is FHA Losing Market Share for Home Loans?
In a recent article the FHA Mortgage Guide reported the statistics for February FHA loan originations. HUD released these figures and the early results indicate that this new FHA loan program looks like a hit. This FHA loan product is on its way to insure over two million FHA mortgages in 2010. Those figures sound robust but it’s still down 29.5% from the previous year.
Many industry insiders believe that FHA will lose some of their market share because of new FHA requirements and tighter FHA guidelines. FHA mortgage rates remain ridiculously low, but most first time home buyers are having a difficult time qualifying for a FHA home loan. Time will tell if American consumers will continue to use FHA mortgage loans for refinancing. Rising mortgage insurance premiums and their higher credit score requirements certainly are not helping matters.
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