MADISON, Wis. — Even in housing markets performing well above the national average "[Members] can't just put the house on the market and pay it off, because by the time they pay their Realtor's commission, they've lost a lot of money," explained Tracy Ashfield, EVP with Strategic Mortgage Solutions.
Delinquencies on FHA loans mirroring those of VA loans FHA loans is fairly common in nasty recessions, Ashfield noted. Recessions tend to squeeze the more financially vulnerable, and with 3% down payment available under FHA and 100% financing available with VA loans, members utilizing these programs are much more likely to fall behind on payments. "Higher LTVs are going to default at a higher propensity versus those who have maybe a 50 to 60% LTV," she added.
