For the first time in its 78-year history, the Federal Housing Administration may be facing the spector of a taxpayer bail out. The agency faces a $16.3 billion deficit in a report issued to Congress.
How FHA will counteract this is by increasing insurance premiums by .01 percent, increasing the average payment for a mortgage holder by around $13 a month. They will also sell 1,000 delinquent loans a quarter and increase short sales.
For buyers and our recovery (existing home prices placed another annual gain in October for the 8th month in a row), losing FHA financing would be detrimental. FHA financing allows buyers to purchase a home with 3.5 percent down, allowing more folks to take advantage of the low interest rates.
I had a couple just purchase a home for $158,000 and their payment is under $1,100 a month with an FHA loan, way cheaper than renting an equivalent home.
By the Numbers:
179 Active Listings
111 Average Days on the Market
$189,024 average list price