FHA Mortgages: Get a Good Deal While You Can

Next time you're inclined to complain about the bankers' bailout, remember that homebuyers are now on government life support as much as anyone.

This week, Federal Housing Administration chief David Stevens announced that his agency is now the largest source of home-purchase mortgages in the nation. According to the firm Potomac Partners, FHA insured $52.5 billion in purchase loans in the first three months of 2010. The government-controlled Fannie Mae and Freddie Mac purchased just $46 billion.

This is the first time in memory that FHA is the dominant player in the mortgage business, a role it hasn't really had since era of "Father Knows Best" in the 1950s.

What does FHA's new dominance mean for home buyers?