FHA & VA Loan Servicing Is Growing — What It Means for You

Government-backed mortgage servicing through Ginnie Mae is on the rise, reflecting strong demand for FHA and VA loans — a trend California buyers with lower down payments should pay attention to.

Here's a trend worth noting if you're exploring government-backed loan options: Ginnie Mae — the entity that securitizes FHA, VA, and USDA loans — now accounts for 18.5% of all residential mortgage servicing in the country, and that share is growing.

During the first quarter of 2026, Ginnie Mae's total servicing portfolio grew 1% to $2.74 trillion, even as conventional (Fannie Mae/Freddie Mac) servicing volume dipped slightly. This tells us that more borrowers are turning to government-backed loans — and for good reason.

For California buyers, this is particularly relevant:

- **FHA loans** remain one of the most accessible paths to homeownership, requiring as little as 3.5% down with flexible credit guidelines.

- **VA loans** offer eligible veterans and active-duty service members the powerful benefit of zero down payment and no private mortgage insurance.

- **Increased competition among servicers** in the government loan space can mean better service options for borrowers over the life of their loan.

Whether you're a first-time buyer, a veteran, or someone rebuilding credit, a government-backed loan could be the smart move in today's market.

Curious whether an FHA or VA loan is right for your situation? Reach out to us today — we'll walk you through your options at no cost or obligation.