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Considering the Future of FHA Loan Financing

June 9th, 2010

Yes FHA mortgage rates are low, but the FHA loan program as a whole may be in jeopardy of existence.  Many FHA blogs have posed the reality that the FHA loan product is at serious risk to be shut down.  In this political climate it becomes obvious that anything is possible because Congress must pass bill to continue to fund the FHA finance programs. FHA FHA first time home buyer loans have been promoting home ownership since the great depression.  Even as we discuss their recent failures, the argument could be made that FHA is one of the most successful government initiative in the last century.  

The FHA Home Loan Refinancing blog reported that the FHA reserves have covered $6 billion over the last 6 months. Yet HUD had predicted the FHA agency would pay $8.7 billion for loan defaults.  This FHA blog poses the question, “should we cheer because the FHA home loans are preforming better than anticipated or be critical of a federal loan program that is failing in a failing economy?”  Read the original FHA loan article online > Is FHA Mortgage Financing in Trouble?

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