Polygon Research Blog

FHA Lending Trends - October

2021-12-13 14:50 GovLoans Fair Lending
Every month we take a look at the state of FHA lending by leveraging our app, FHAVision. FHAVision is an interactive dashboard of monthly FHA endorsement data by originator and sponsor. With historical data dating back to 2010, we pull in current data each month as soon as it is published by HUD. Our users have access to loan-level data on 1300+ lenders by loan purpose, channel, and interest rate, with geographical analysis of FHA lending trends from the national level down to zip code.

As of October, the 2021 YTD FHA loan production totaled 1,183,670 loans, both purchase and refinance. The resulting loan volume was $284.9 Billion. The purchase loan production as of October 2021YTD was 69,875, 12% lower y-o-y, the lowest October purchase loan production since 2015, but higher than the October FHA loan production in 2010 through 2014 (see Chart 1 below).

Chart 1: FHA Purchase October Loan Production (2010-2021)
Source: FHAVision, Updated through October 2021

Average Loan Size for FHA Purchase Mortgages

Nationally, the average loan size of FHA Purchase Mortgage increased 46% from $178,522 in October 2010 to $261,213 in October 2021 (see Chart 2 below).

Chart: Average FHA Purchase Loan Size
Source: FHAVision, Updated through October 2021

The top 3 states by FHA Purchase Loan Production, TX, FL, and CA, saw sharper increases in the average FHA purchase loan size.
  • In FL, the average FHA purchase loan size increased by 81%, from $148,840 in October 2010 to $269,203 in October 2021.
  • In CA, this increase was 66%, or $170,561, from $256,522 in October 2010 to $427, 083 in October 2021.
  • And in TX, the average FHA purchase loan size increased by 69%, or $99,794, from $144,388 in October 2010 to $244,182 in October 2021. 

For further insights and exploration, visit Free Resources in our store to download the latest 2021 FHA Infographic, or you can subscribe to FHAVision for detailed insights in all markets. For more information visit: Polygon Research.