The Mortgage Bankers Association recently announced that government-backed FHA and VA mortgage applications suddenly and drastically increased to 36% of all mortgage applications during the month of June. Just one month prior, FHA and VA mortgage applications represented 25.7% of all mortgage applications nationwide, and 27% in June 2008.
Due to the strict lending guidelines established by banks on conventional mortgages, borrowers are now looking to FHA and VA mortgages as an offset due specifically to the less-stringent down payment requirements. Most banks are requiring a large down payment of 20%, but FHA requires only 3.5%.
Mortgage rates have steadily moved back down to the 5% range, so homeowners looking to refinance and those looking to purchase should take advantage of the opportunity today, before rates rise again.
Loading ...
RSS feed for comments on this post. TrackBack URL
Leave a comment