FHA Loans Top the List

As 2009 has come to a close it is a time to take a hard look at some of the real estate statistics for the Woodbridge VA area. One of things I’ve been tracking this year is the type of financing that buyers are using.


There is little doubt that FHA loans have topped the list as the most popular loan. With down payments for FHA loans currently at 3.5% and many sellers contributing toward a buyer’s closing costs it makes sense that FHA would be the easiest loan for most buyers.

Investors continued to be a major force in the Woodbridge market with cash purchases, though not all cash buyers have been investors. I’ve been involved in multiple cash transactions where the purchasers sold other property and decided that the best use of their proceeds was to buy with cash.

As the market heads into 2010 and rumors continue to float that FHA may change the minimum down payment to 5% it will be interesting to see two things:

1) Will sales slow if the minimum down payment is raised?
2) Will a new low program emerge from “conventional” lenders that will offer an alternative?

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