Thursday, May 26, 2011

GOP proposes increase in FHA down payments (Washington Post)

A Republican-led proposal circulated Monday would boost the down payment
requirement for mortgages backed by the Federal Housing Administration, a move
some industry experts said would shut potential home buyers out of the market.

Borrowers who take out FHA-insured mortgages are permitted to put down as
little as 3.5 percent, making those loans an especially attractive choice for
first-time home buyers. But as defaults rose during the housing market?s worst
days, FHA?s cash reserves dwindled, creating concerns that taxpayers may have
to come to the agency?s rescue.

Read full article >>



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