FHA’s mortgage insurance reserves have dropped far below congressionally-mandated levels, but the agency still has enough of a financial cushion to handle all expected loan losses for the next 30 years, with a multi-billion dollar surplus beyond that.

Officials say there should be no need for congressional appropriations or a Treasury bailout of FHA, and no need for sharp cutbacks in the availability of FHA financing for first-time buyers and individuals with credit issues.

FHA has grown increasingly popular again as other loan programs have disappeared.  During the past several years, FHA’s market share has jumped from barely 2 percent in 2005 to upwards of 30 percent this year. At the same time, however, its delinquency ratios on loans originated during 2007 and 2008 have increased sharply.

FHA is not just for first time homebuyers and does not have any income limits associated with it.  FHA current loan limit in the Omaha area is $271,050, which is more than enough money to buy a 4 bedroom home in many Omaha subdivisions.

To get more information about financing and finding the right house for you and your family contact bill.swanson@cbshome.com.