In a housing market where a 20 percent down payment on a home can be more than some people make in a year, it should come as no surprise that the number of home buyers turning to low down payment options is increasing rapidly.
More than one million borrowers benefited from an FHA loan in 2018. This is according to the FHA Annual Report to Congress released last month. FHA loans allow borrowers to purchase a qualified home with as little as 3.5 percent down and less stringent credit qualifications.
Currently, $1.196 trillion of America’s mortgage debt is insured by the FHA throughout 8 million households. That is 12.1 percent of all single-family residential mortgage originations by volume.
Today, FHA 30-year fixed mortgage rates are averaging 3.75 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.