From FHA performance to down-payment assistance, find out the FHA trends to watch in 2019.
The Federal Housing Administration (FHA) insures mortgages made by approved lenders with its Mutual Mortgage Insurance (MMI) Fund, which collects premiums and pays claims. The recent release of the FHA’s annual report and increase in FHA loan limits makes it a good time to assess the program’s health.
In fulfilling its mission to help more Americans reach homeownership, the FHA tends to insure riskier mortgages. While occupying just 12 percent of the overall mortgage market, the FHA finances 33 percent of purchase activity for first-time homebuyers and 34 percent of all minority purchase activity.