Christie Smythe over at the Arizona Daily Star in Tucson wrote this interesting piece on the resurgence of FHA loans this year. It’s worth a read:
On the national level, slow real estate sales and sinking prices are prompting some comparisons to the Great Depression.
Little wonder, then, that a home-buying program from the New Deal is beginning to make a comeback.
Federal Housing Administration loans, which fell out of favor during the red-hot real estate market of years past, are becoming more alluring to real estate agents and mortgage professionals looking for ways to keep transactions flowing.
The FHA program was established in 1934 to help moderate-income Americans purchase homes, according to the U.S. Department of Housing and Urban Development. The Federal Housing Administration doesn’t provide mortgages, but rather insures them against default.