As conventional loan applications drop over 50% from the year to date it’s also clear that borrowers are RUNNING towards FHA mortgages as they seek to refinance out of costly adjustable-rate mortgages or take out purchase loans with low down payments. The Mortgage Bankers Association says applications for government-insured loans were up 133.9 percent in July from a year ago, while applications for conventional loans like those purchased and guaranteed by Fannie Mae and Freddie Mac fell 50.2 percent.

In addition, Congress and the Bush administration have expanded FHA loan guarantee programs by raising loan limits and creating new products that allow borrowers who are behind on their existing mortgage refinance into more affordable loans.

The market share of guaranteed by government programs (FHA and VA) has done nothing, but skyrocket since February 2007, and that growth has accelerated this year with room to run.

Applications for government-insured loans, which hit a low in August 2005 with a market share of 5.8 percent, accounted for 29.1 percent of mortgage applications in July, compared with 8.4 percent a year ago and 9.4 percent in January.

So it’s obvious what needs to be done:

With rates near all time lows and FHA Program Expansions in full fore it’s time for you to take control of your home financing and join the millions of Americans moving towards the light.

Find out how much you can afford through FHA loans here: http://www.whatisyourrate.com