A Surge in FHA Loans

Yes, the volume of FHA loans has grown tremendously the past year, both nationally and locally. The Investor's Business Daily newspaper reported on Sept. 3rd that the volume of FHA insured loans nationally has tripled in 2009 over 2008. Ancedotally, I estimate the amount of increase locally is "a double." The benefit of an FHA loan is a low down-payment, 3.5%. The FHA requires the Buyer to purchase up-front Mortgage Insurance, which is 1.5% of the mortgage amount and is generally known by its acronym, MIP. The up-front MIP (Mortgage Insurance Premium) can be financed if the appraisal on the property is high enough to support that.



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