FHA Update -NAR – Congress
NAR is asking Congress to refrain from raising the min downpayment requirements for FHA Loans. In 2009, FHA insured more than half of the loans taken out by first time home buyers. NAR is concerned that the road to recovery will be delayed even further for the housing market if FHA loans become more difficult to acquire. Critics are asking for FHA to increase the downpayment amount to 5% from its current 3.5%, amongst other stricter proposals. These proposals include higher down payment for borrowers with sub 600 credit scores, capping seller concessionsat a max of 3%, and so on…..