This post will be of most interest to my loan writing friends, a.k.a., mortgage brokers. I looked at the different types of loans used to purchase single family houses in the one-year period of July 2008 to July 2009 in Lane County. Raw data came from rmls.
Of the 3,172 sales, a little over ½ the loans were conventional; cash purchases came next, with one in five purchases last year, FHA insured loans comprised only 18%; and VA was a paltry 4%. Given the popularity of FHA loans these days, I was surprised to find that less than 1 in 5 purchase money loans last year were FHA.
I am faily confident that the Government Section is higher than the RMLS data presents. My understanding is the RMLS input is based off the listing agent data entry. Sometimes the listing agent would have no knowledge of the loan that was done or simply might not put the correct data in RMLS. Very interesting data I want to thank you for sharing I will take sometime to review if more.
Well, you know what they say–garbage in, garbage out. We usually know what kind of loan is involved, but that’s not to say we always enter it correctly.
Craig, I wonder if the conventional could be broken down further to see how many of these were Owner occupied purchase vs. investment property purchases. I will admit, I am surprised. If you can make that determination, I’d love to find out. Also Rural Development Loans? would those be under other?
Good questions. From the info I get, I can’t tell owner occupied vs. rental. I think rural is under the “other category.” It’s not broken-out per se.
A recent WSJ article quoted HUD stats of <8% for the state with the greatest FHA loans in the last tow years (Texas). So, while not entirely on point, does tend to support my number.