FHA Mortgages

FHA mortgage applications increased 50% from October 2008 through mid-August 2009.  FHA is backing approximately 25% of all new mortgages.

The average borrower with FHA-insured loans has an average credit score of 690. Two years ago, the average credit score was 630.  FHA-insured loan borrowers with a credit score below 500 will need to have a 10% down payment.  Even with the increased average credit score and the need for a 10% down payment from borrowers with a credit score under 500, some analysts are concerned regarding the risk taken on by FHA. 

We all know that our credit scores can plummet due to job loss, illness, etc.; however, I still feel FHA loans are important for the recovery of the housing market.
Excerpts taken from: Source: USA Today, Stephanie Armour (09/02/2009)