American Realty of Dubuque, Inc.

SEEMS LIKE EVERYONE IS IN DEBT THESE DAYS-EVEN THE FHA

 

The FHA was created about 78 years ago (during the great depression) to promote stability in the housing market and allow middle class families to attain the dream of "home ownership".  Have they done a good job?? - yes they have!! 

 

However, as predicted by a number of economists, this depression-era for homeowners seems to be going broke and may have to dip into the US treasury to keep it afloat.  Does that sound familiar?  And "wow" an audit seems to indicate that the shortfall will be in the 16 billion range.  This problem seems to be the result of the rolling housing debacle of the last decade.  Think of it - it only took about 10 years to undo 78 years of great service by FHA. 

 

I think it's fair to say though that without the FHA the current housing crisis might have been lots worse -but not without stress.  In times of crises when private financial institutions have fled the marketplace and have consistently failed to step up to the plate the FHA has remained steadfast. 

 

It will be interesting to see what steps the FHA takes to meet their current challenges.  Will they raise premiums; will they tap into the US treasury - who knows!!  It will be interesting to watch.

 

We will try to keep you up to date.