The Federal Housing Administration (FHA) helped many home owners when the housing market was in decline, and recent reforms have made the FHA more stable as the housing market rebounds, according to a report from realtor.org.
Along with private mortgage insurance, FHA home loans allow flexible mortgage guidelines, making the dream of home ownership a reality for many Dallas area residents. Recently, FHA has made reforms involving better risk management, including hiring a financial risk officer. FHA also improved oversight measures and established credit score minimums. These changes benefit home owners by making the administration more financially stable and will allow FHA home loans to be offered for years to come.
Leading up to these reforms, the FHA has taken a financial loss in most recent years after having allowed many people to buy homes at historic low rates and home values. This also prevented home values from dropping too low. In fact, studies show that home equity could have dropped 25% lower than it did without the FHA’s assistance. The FHA had a big hand in expediting the housing recovery, which is continuing to strengthen. The U.S economy continues to improve as well, which in turn has helped the FHA.
In addition to the FHA, private capital is becoming more prominent again in housing market financing. However, the FHA will continue to play a major role in mortgage financing, and further reforms may make it even more stable and secure from losses.
There are many great reasons to consider and FHA loan in Dallas. Please contact us to learn more about the mortgage options that are available to you.
+Patrick Glaros empowers people to find their best home loan option. Through planning and education, and a goal-oriented approach, Patrick and the team at Dallas Mortgage Planners have one common goal: Help clients make an informed decision to choose the best home loan for their unique situation. Find other articles written by Patrick.
