The Importance of FHA Loans
Posted on | September 24, 2009 | No Comments
After this last downturn in the housing market it’s been a very crazy time in relation to mortgages. If you doubt the need for government involvement in the loan process you may be surprised to know that nearly 90% of all the home loans in the US this year were either funded or guaranteed by the US Government. If we did not have these government loans there would not have been a housing recovery because many people would not have been able to afford the mortgage insurance (MI) they would have needed to get a conventional loan.
When mortgages imploded and people could not pay their note, it is the mortgage insurers that got caught; big time. This is why it is now so difficult to get a second mortgage and why mortgage insurance has gotten so high. The bottom line is the FHA loans have put people in homes for the first time, have saved people from loosing their homes and have secured the housing market so it can slowly recover. FHA has its place and it’s a good place for the American people.
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