With lower down payment and credit requirements compared to other mortgages, FHA loans have been a key resource for first-time homebuyers. But during the economic crisis caused by the coronavirus pandemic, investors have raised their criteria for purchasing these loans.
Purchase mortgage applications across the country continued to rise last week, while the percent of mortgages in forbearance had the smallest increase since March, according to the Mortgage Bankers Association’s latest surveys.
Despite rising home prices and lagging wage growth, lenders can count on Millennials to be among the borrowers this spring, with more and more becoming first-time homebuyers thanks to down payment assistance programs.
