Minnesota Mortgage Blog - MN Mortgage and Real Estate News

FHA Market Share to Expand in 2008

In 2006, the FHA's market share was about 3% of total originations. Today, that number is closer to 10%, and climbing fast.

We are predicting robust growth in FHA originations this year.

• Since July, 2007 there has been unprecedented volatility in the secondary market for mortgage loans. The market for non-traditional loans has dried up, and investors are looking askance at anything outside of the conforming or government arena. The GSE's have taken steps to insulate against declining market values, and tighter underwriting guidelines will remain in place for some time to come. Combine these changes with a new set of industry regulations addressing home ownership and predatory lending, and you have a perfect scenario for the growth of FHA loan demand.
• Housing is the largest domestic policy issue on the horizon as we head into the elections for the U.S. Presidency this fall. The recently passed Stimulus Bill included a number of changes that will have a positive impact on FHA programs, including a new floor of $271,050 and maximum loan limits of up to $729,750. These limits are set to expire on December 31, 2008, giving lenders plenty of time to hop on the bandwagon

As a longstanding providers of FHA loans, we have the expertise and insight to customers buy or refinance their homes with stable FHA financing. FHA loans may account for more than 20% of loan originations by the fourth quarter of this year. Put our FHA expertise to work to for you by contacting us today. It's always FREE to apply.

Maximum loan amounts vary by State and County. Find out the loan limit is your area using our FREE Loan Limit Lookup Tool 

Copyright 2008, Joe Metzler, http://www.joemetzler.com. All Rights Reserved.