A review of the latest documents from the Federal Housing Administration (FHA) showed some disappointing figures. Statistics show that half of the mortgages issued to at-risk homeowners were in default just a year later. After the financial crisis struck in 2008, the federal government devised a plan to help people stay in their homes. The FHA gave loans to first-time buyers with limited money down and poor credit in order to revive the housing market as well. If the first-time buyers had a credit score of 580 or higher, the government was giving out loans with down payments of just 3.5%, which is quite law compared to the traditional 10% down payment.
Now that the FHA foreclosures have shown to not be as effective as they were intended to be, there may be more stringent demands set for the future. Experts say that the housing market is starting to finally show signs of stabilization and now the federal government is working hard to ensure that another collapse does not happen in the future so more homeowners can remain in possession of their homes instead of having to worry about foreclosure.