FHA Mortgage Coverage Limits Doubled During Economic Crisis
Created on May 11, 2015
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The coverage limit for FHA single-family mortgage eligibility more than doubled from 2007 to 2010 during the collapse in the housing market and financial sector. These increases were due primarily to higher loans for more expensive homes. As a result, FHA homebuyers could buy homes more than twice the prices of the U.S. median home while providing only modest down payments.
Note: Figures show the aggregate average of each year’s monthly median home prices. Each year is demarcated as beginning on January 1. Sources: U.S. Department of Housing and Urban Development, Federal Housing Administration, “FHA Mortgage Limits,” https://entp.hud.gov/idapp/html/hicostlook.cfm (accessed April 21, 2015), and Federal Reserve Bank of St. Louis, “Median Sales Price for New Houses Sold in the United States,” https://research.stlouisfed.org/fred2/series/MSPNHSUS (accessed April 1, 2015).
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Tags: FHA, Federal-Housing-Administration, housing-finance