Continuing news regarding the re-emergence of FHA-insured home loans surfaced today over at Bloomberg.com in their article that focuses on the benefits to be had by Ginnie Mae and the FHA market over the recent subprime fallout.  Both the current Bush administration and Democtratic-hopeful Hillary Clinton have said that they back legislation to re-invigorate the FHA loan program to help cover low and middle-income homeowners over the coming years.

Many of the issues that have plagued FHA mortgages in the past 5 years, during which they have lost 2/3rds or more of their share of the lending market (thanks in no small part to the prevelance of subprime loans over the same time period), are addressed in a bill that flew through the House of Representatives last year only to stall in the Senate.  With all the ink that the subprime fallout has received, many expect this bill to be a high priority in the coming months.

The fact that FHA loans currently require at least a 3% downpayment is one issue that some are speaking out against and hoping to change.  No-money-down home loans are popular among first time homebuyers and people with less-than-perfect credit alike, although some fear as been voiced over whether amending the FHA program to be more like the lending products that helped caused the subprime fallout is a smart idea.

One thing is for certain, Ginnie Mae and FHA lenders are sure to see a rise in FHA applications over the next year.