FHA Powers What's Left of the Home MarketSubmitted by bobbyw24 on Sun, 03/06/2011 - 16:47
By AMY HOAK
As one of the few backers of low-down-payment mortgages in a time of stringent lender underwriting, the Federal Housing Administration has become a primary means of financing for U.S. home buyers.
But as the government moves to reform the mortgage market, the FHA is heading for some changes that could limit borrowers' access to the loans -- or at least make them more expensive.
[36MW] Lisa Haney
About 56% of mortgages for a home purchase were FHA-insured in 2009, up from 6% in 2007, according to a report from the George Washington University School of Business. Many FHA borrowers are first-time buyers drawn by a down-payment requirement of just 3.5% of a home's purchase price.