The number of federal loans is down as the gap between homeowners widens.
A new report from the Fair Housing Center of central Indiana takes a closer look at the use of federal loans for low-income people and first-time home buyers in Marion County.
The analysis is based on data that explores mortgages and finds a significant reduction in loans from the Federal Housing Agency, or FHA.
FHCCI executive director Amy Nelson said a competitive and tight housing market and foreign investors are compounding the problem.
“What we’re hearing from real estate agents is that FHA offers are just being swept off the table,” Nelson said.
The report also looks at VA loans and finds that the number has increased slightly, but it’s still a small number of federal loans overall.
Indianapolis has a large ownership gap between white and black households. In Marion County, homeownership rates are 65% for whites, compared to just 34% for blacks, 39% for Hispanics, and 46% for Asians. Nelson says families’ inability to use FHA disproportionately impacts black and Hispanic families.
Nelson said the reports can be used by consumers in their decision-making process.
“In the report, we give data lender by lender so they can research their lender or who they are doing business with or who they plan to do business with and evaluate and use that information to determine how they want to proceed,” said Nelson.
From 2018 to 2021, conventional loans accounted for more than 78% of mortgages in Marion County, up from 63% from 2008 to 2011.