Separate figures from chartered surveyors e.surv tell a similar story: it said the number of borrowers with deposits of less than 15% was up by 47% year-on-year in June, reaching its highest level since the financial crisis.
Demand for loans is likely to strengthen over the coming months as a result of lower mortgage rates and a slight increase in the willingness to lend to borrowers with deposits of less than 10%.
However, lenders said they did not expect to reduce availability further over the next three months, adding that they were more willing than before to offer mortgages to borrowers with deposits of less than 10%.
In fact, 40percentt of student loan borrowers take loans of less than $10,000, while another 30percenttakeke on loans between $10,000 and $25,000.
Companies selling mortgage insurance (PMI) to borrowers making down payments of less than 20% would appear to benefit from low interest rates, more first-time homebuyers and an increase in housing prices.
More than 99percentt of borrowers received less than $6,000, with many receiving checks of just $300.
Forty-five percent of borrowers have less than 20 percent equity in their homes, and almost 70 percent of those mortgages carry interest rates above 5 percent, while the current average rate for a 30-year loan is closer to 4 percent.
Those bonds of less creditworthy borrowers were among the strongest performers in the three months through March.
In New York City, borrowers pay 2.05percentt on mortgages of less than $500,000 and 2.175 percent on those above that amount.
The FHA's been around since 1934, not lending directly to homeowners but insuring private mortgages on behalf of less advantaged borrowers -- over 30 million since its inception.
