FHA Down Payments Increasing?
ByThe Word on the Street is they are giving the increasing of the Down Payment required to obtain a FHA Loan from 3.5% to 5%.
They are also considering increasing of the PMI – property mortgage insurance and decreasing the monies allowable to be paid by the Sellers towards Buyer closing costs.
Reason? They don’t even want to be associated with the Sub Prime fallout or have anything like that happen to them. They are the Government you know!
So, because FHA has been approximately 30% of all loan configurations, they want to keep their LTV’s true. Or at least more accurate and with more controllable standards.
One approach has to do with Buyer Cash injection. The more Buyer Cash they have to invest, the more likely the home mortgage will be paid and not defaulted on.
CNN wrote an excellent article that quotes chapter and verse.
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