FHA Loans the Choice of Housing Comrades. How Government Backed Loans are creating Another Problem for the Housing Market

``FHA is basically eating up the slack from imploded toxic mortgage lenders. FHA insured loans are now up four times in volume from their 2006 pace. They will constitute some 10% of all outstanding loans by the end of the year. And in some areas, these new low money down loans are making up a big chunk of new sales... Both the FHA and Veterans Administration now make up over 90% of all high loan to value mortgages. The vast majority of these loans have LTV over 96% which is smart if you enjoy driving off economic cliffs. Keep in mind that the government is now insuring loans even though the housing market has not stabilized. ''