FHA, VA Loans Surge in October

The Mortgage Bankers Association reports that FHA, VA, and other government-insured loans accounted for about 33 percent of home loan applications in October, up from 10 percent a year ago.

Government-insured loans secured their biggest share of applications since February 1991 because they have lower down-payment criteria, more relaxed underwriting standards, and also had a higher loan limit for high-cost areas this year, the MBA notes.

Applications for government-insured loans surged 113.6 percent from a year ago in October, while applications for conventional loans fell 49.7 percent.
Refinancings from conventional loans to FHA-insured loans rocketed 144.3 percent from a year ago.

Source: Inman News (11/26/08)