We’ve all tightened our belts recently, so as you would suspect businesses and government entities are doing the same thing. Even though some have declared the recession to be over, we are not in the clear yet.
The Washington Post recently reported that hopeful home buyers should “Expect Tightening from the Federal Housing Administration (FHA)” and gave its readers some idea of what this may look like, including:
Higher premiums for mortgage insurance-It may be possible to do this without adding a hefty cost to what borrowers each month.
Higher down payments-Those is favor say that this will cut down on the risk of foreclosure. Those opposed say that it put the FHA’s mission of helping those who are not well-off in jeopardy.
Higher standers for credit-As lenders go, the FHA has been generous to those with less-than-perfect credit histories, but some in the industry say it is time to raise the bar, again to minimize the risk of foreclosure and late payments.