Do you ever wonder how much lending practices really affected the Tallahassee housing market? We read so many stories about “predatory lending” and abused government loan programs, that I got a little curious and decided to check out the history of mortgage loans in Tallahassee.
I decided to limit my sales information to “arms length home sales” only, for two basic reasons. First, it would reduce the amount of sales that I would have to screen, and second, it would represent a truer picture of the normal real estate lending practices in Tallahassee.
Different Home Loan Types In Tallahassee
Over the past twenty years, there have been five main sources of funds for home buyers in Tallahassee. Home buyers have completed their purchases with conventional financing, FHA financing, Cash, VA Loan financing, and individual financing. I was a bit surprised to see that FHA has only financed 16% of the closed home purchases since 1991.
FHA Loans Becoming More Popular In Tallahassee
The popularity and usage of FHA loans is growing in Tallahassee. When we look at a graph of Combined Loan To Values in closed arms-length home sales in Tallahassee, the reason begins to become mighty clear.
[click to see graphs of FHA and Conventional Mortgage loans…]
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