May 20, 2012 Josh Cantwell (0) More and more, Americans aren’t letting a foreclosure, bankruptcy or short sale prevent them from becoming homeowners again, and quickly. In year’s past, the only option seemed to be renting. But today, as rental prices are on the rise, they want to take advantage of low home prices. So where is the help coming from for these Americans? The government, in the form of FHA loans. “The number of FHA-insured home loans has soared in recent years as subprime loans have disappeared and fewer Americans have qualified for conventional mortgages backed by Fannie Mae and Freddie Mac, which were rescued in 2008 by the U.S. government after loan losses.” Even Ben Bernanke, Chairman of the Federal Reserve, agreed that banks have become so restrictive that many homebuyers are being squeezed out of the market. By the close of 2011, FHA-backed loans accounted for 30% of loans for home purchases. Critics argue that the FHA loans are putting people right back at risk for default, possibly leading their second chance to yet another loss. For the full article, click here.