VA and FHA Home Loan Share Keeps Rising
According to FHA mortgage lender Jason Sklar, “Unfortunately, VA and FHA home loans are usually the only options for borrowers seeking a refinance loan.” Sklar continued, “One of the major problems is that there are still millions of homeowners that are seeking refinancing options, but they don’t fit into the government lending boxes.”
The government-insured share of new mortgage loan applications continues to increase compared to conventional home loan applications, according to the weekly application survey of the Mortgage Bankers Association. During the month of October, 33% of home loan applications were for government-insured mortgages, the MBA said. That compares to 10% in October of 2007. The October high water mark for Federal Housing Administration and Veterans Affairs loans is the highest government-loan share of the market seen since 1991. The government share hit a low of 6% in August of 2005.
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