First of all, we'd like to announce the initial launch of our FHA Loan Calculator here on Mortgage Loan Place. We realize that many of our visitors that are interested in FHA mortgage information can benefit from testing out some financial scenarios using the calculator before worrying about contacting a loan officer. Look for updates to make the FHA calculator even better in the coming weeks.
More importantly, it is becoming apparent that FHA loans may be returning to the forefront of the mortgage industry. The well-publicized problems in the news centering on subprime lenders and the fallout of subprime loans means that many potential homeowners who have less-than-perfect credit will be looking for an alternative lending instrument in the future. Many experts believe that we will see a re-emergence of the HUD-backed FHA Loan Program because of this.
After being extremely popular even up until the 1990's, FHA loans began to fall off as a common mortgage option because they (currently) require 3% down and are not easy to obtain. Since the government backs the loans, there is a reputation of FHA home loans having a lot 'red tape'.
The recent fallout of the subprime market, combined with recent legislation that burned through the House but stalled in the Sentate, means FHA loans may once again rise to be anywhere from 10-25% of the mortgage industry. Many congressmen are currently stating that they are interested in passing legislation that will amend the FHA program to include no-money-down loans and also make it much easier for potential homeowners to obtain them.
Keep your eye out for more FHA news in the near future. In the meantime, if you'd like to learn more about FHA loans, visit our FHA section.