…but some homeowners are not doing their part.
Many people are having difficulty keeping up with their FHA mortgage payments. With unemployment still rising, it should come as no surprise. Those lucky enough to find new jobs may have taken a pay-cut, and other economic factors have likely helped contribute to the rising delinquencies. Let’s face it; it’s rough out there for us all.
FHA mortgages have become popular over the last few years. More and more first-time homebuyers use FHA since underwriting guidelines are less strict and the programs require as little as 3.5% down-payment. Combined with the new $8,000 tax credit for first-time homebuyers, FHA programs are helping many Americans purchase their first home with ease. But as we’re finding out, it’s not taking long for some homeowners to feel the effects of the recession.
According to the Wall Street Journal, recent data shows that 10% of homeowners who received financing from FHA in the first 3 months of 2008 were already 2 months behind with their payments in that first year. The government has recently taken drastic steps to help the housing crisis, but as it turns out, no one is immune to the difficult market conditions in which we currently live.
One thing to remember is that owning a home is a risk and an investment. It’s a huge responsibility, and sadly, not everyone can handle it. The government can step in to assist, but they can only do so much. We’ve seen how bad the economy can get, but hopefully we can all take away a little something from this experience.
Loading ...
RSS feed for comments on this post. TrackBack URL
Leave a comment