Friday, January 2, 2026HUD’s Federal Housing Administration (FHA) Fulfilled Core Mission in Fiscal Year 2025

WASHINGTON - The Department of Housing and Urban Development's (HUD) Federal Housing Administration (FHA) released its fiscal year (FY) 2025 annual report covering the financial status of the FHA Mutual Mortgage Insurance (MMI) Fund and its Single Family mortgage insurance programs. FHA supported a pathway to homeownership for more than 876,000 Americans in FY 2025 while maintaining solid financial performance of the MMI Fund and eliminating significant bureaucratic red tape in its Single Family programs.

"Thanks to President Trump's leadership, HUD is improving housing affordability and helping hardworking Americans achieve the dream of homeownership - FHA plays a central role in advancing both of these priorities," said Secretary Turner. "As this report demonstrates, we are prioritizing sound stewardship, cutting bureaucratic red tape, and ensuring the stability and strong financial footing of the MMI fund for the benefit of homeowners today and tomorrow."

"Under the leadership of HUD Secretary Turner, FHA's Single Family program has reduced costs for lenders and borrowers, protected American taxpayers from risk, and served as a vital financing source for Americans pursuing the dream of homeownership," said Principal Deputy Assistant Secretary for HUD's Office of Housing and FHA Frank Cassidy. "Our work to build a more efficient and effective FHA program underscores this administration's commitment of increasing housing supply and improving housing affordability."

The MMI Fund supports FHA's Single Family mortgage insurance programs, including all forward mortgage purchase and refinance transactions, as well as mortgages insured since 2009 under the Home Equity Conversion Mortgage (HECM) reverse mortgage program. The FY25 report illustrates the MMI Fund had an overall Capital Ratio of 11.47 percent as of September 30, 2025, more than five times the Congressionally mandated 2.0 percent capital ratio. MMI Fund Capital stood at $188.9 billion as of September 30, 2025.

Key Facts from FHA's FY 2025 MMI Fund Annual Report

• As of September 30, 2025, FHA had active insurance on 8.1 million single family forward mortgages with a total unpaid principal balance of more than 1.6 trillion, and more than 681,000 reverse mortgages with a maximum claim amount of over $64.3 billion.
• The share of first-time homebuyers using FHA insurance reached more than 83 percent of total FHA forward mortgage purchase endorsements in FY 2025. First-time homebuyers consistently represent between 75 percent and 85 percent of FHA-insured forward purchase mortgages.
• The overall Capital Ratio for FY 2025 was 11.47 percent. The overall Capital Ratio is one indicator of the MMI Fund's financial health and includes both the FHA-insured Single Family forward and reverse mortgage portfolios. The overall Capital Ratio is more than five times higher than the Congressionally mandated minimum of 2.0 percent.
• FHA's forward mortgage portfolio achieved solid performance with a stand-alone capital ratio of 10.95 percent as of September 30, 2025, a 0.07 percentage point increase from FY 2024.
• The Home Equity Conversion Mortgage (HECM) reverse mortgage portfolio achieved a 24.06 percent capital ratio as of September 30, 2025, a 0.44 percentage point decrease from FY 2024.
• The MMI Fund now holds $188.9 billion in MMI Capital, a $16.1 billion increase from FY 2024. Over $100 billion of this total consists of cash or cash-equivalents.

Independent Actuary

IT Data Consulting (ITDC) served as the independent actuary for FHA in FY25. By serving as a critical check on the results, an independent actuarial review remains an integral part of the Annual Report process. ITDC's independent actuarial review reports for forward mortgages and HECMs confirm that the estimates used in the FY 2025 Annual Report to calculate the capital ratio are reasonable. The reports are available on HUD.gov.

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