Renters are buying again as US financing for homes becomes cheaper

Boston

ERIN Maude returned to homeownership in December, three years after losing her condo in the US foreclosure crisis. This time, she's confident she'll keep the house she bought with the help of a 14 per cent raise and a Federal Housing Administration loan, which required little money down.

"I'm very lucky," said Ms Maude, 38, an airline marketing manager. "Without FHA, I don't know how long it would have been before I could have saved for a bigger down payment." Renters gaining confidence about the economy - those buying their first home, and people like Ms Maude who are looking for a second chance - are jumping into the property market.

Many are compensating for soaring starter-home prices with FHA loans that became cheaper after insurance premiums were cut last year. And they're giving a lift to the US homeownership rate, which rose in the second half of…