FHA on track for busiest year as it backs 23% of mortgages

USA Today reports:

Eighty percent of the FHA mortgages for purchasing homes went to first-time buyers drawn to the FHA's low-down payment requirements, starting at 3.5%. Private lenders making conventional loans typically require at least 10% down.

The FHA's market share, about 3% in 2006, has swollen to more than 23%. With credit still tight, many borrowers could not get a mortgage without FHA help.

Uncle Sam the leverage promoter man. Eventually, the FHA will need a bailout because 3% down is 33 to one leverage.