FTHB Participation Grows in GSE Low-Downpayment Programs
December 15, 2017
The GSEs’ low downpayment programs are gaining some traction among first-time homebuyers. According to an analysis by Inside The GSEs, 97 percent loan-to-value mortgages now represent close to 15 percent of first-time homebuyer mortgages sold to the GSEs. The high LTV programs have grown gradually, but steadily, since they were introduced. But they were slow to catch on. By the end of 2015, the high LTV programs represented 5 percent of the FTHB market, which grew to nearly 10 percent at the end of last year. They represented approximately 14 percent of first-timer mortgages in the third quarter of 2017. The top three banks originating these low downpayment loans are...