WASHINGTON, D.C. — The Federal Housing Administration helped more than 876,000 Americans secure a path to homeownership in fiscal year 2025 while building one of the strongest financial buffers in its history, according to a new annual report released by the Department of Housing and Urban Development.
The report details the financial condition of the FHA’s Mutual Mortgage Insurance Fund, which ended the fiscal year with a capital ratio of 11.47 percent — more than five times the minimum level required by Congress — and total capital of $188.9 billion as of September 30, 2025. HUD officials said the results reflect a combination of steady mortgage performance and efforts to streamline FHA’s single-family programs.
HUD Secretary Turner said the findings show the agency balancing expanded access to homeownership with fiscal discipline. He credited the Trump administration with cutting red tape, improving affordability, and protecting taxpayers while keeping the insurance fund on strong footing.
The Mutual Mortgage Insurance Fund backs FHA’s single-family mortgage insurance programs, covering both forward mortgages used to purchase or refinance homes and reverse mortgages insured through the Home Equity Conversion Mortgage program. As of the end of the fiscal year, FHA had active insurance on about 8.1 million forward mortgages with more than $1.6 trillion in unpaid principal balance, along with more than 681,000 reverse mortgages carrying a maximum claim amount exceeding $64.3 billion.
First-time buyers continued to dominate FHA-backed home purchases. More than 83 percent of FHA forward mortgage purchase endorsements in fiscal year 2025 went to first-time homebuyers, a share consistent with the program’s long-standing role as an entry point to homeownership.
Financial metrics in the report point to broad stability across FHA’s portfolios. The forward mortgage portfolio posted a stand-alone capital ratio of 10.95 percent, slightly higher than the previous year. The reverse mortgage portfolio recorded a capital ratio of 24.06 percent, down modestly from fiscal year 2024 but still far above required levels.
Overall, the MMI Fund’s capital grew by $16.1 billion over the year, reaching $188.9 billion. HUD said more than $100 billion of that total is held in cash or cash-equivalent assets, giving the fund substantial liquidity to absorb potential losses during economic stress.
Frank Cassidy, principal deputy assistant secretary for HUD’s Office of Housing and FHA, said the agency’s single-family program has reduced costs for lenders and borrowers while continuing to serve as a key financing source for Americans seeking to buy homes. He said the financial results support the administration’s broader push to expand housing supply and improve affordability.
An independent actuarial review conducted by IT Data Consulting confirmed that the assumptions and estimates used to calculate the fund’s capital ratio were reasonable. HUD said the review serves as an important safeguard in assessing the fund’s health and is a required component of the annual reporting process.
The report arrives as housing affordability remains a central concern nationwide, with FHA continuing to play a pivotal role for buyers who lack large down payments or access to conventional credit. HUD officials said the agency’s financial position positions it to continue that mission while maintaining a strong margin of safety for taxpayers.
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