FHA Challenges
As FHA Commission, David Stevens is evaluating the next steps the agency needs to take in an effort to protect the agency's finances. According to today's article in the
Wall Street Journal, “Souring Mortgages, Weak Market Force FHA to Walk a Tightrope” by Nick Timiraos, Mr. Stevens is expected to announce revisions to the FHA loan process as early as this week.
Possible revisions could be,
Raising the minimum down payment
Establishing a minimum credit score
Increasing the amount that borrowers have to pay for mortgage insurance
Reducing the amount of money sellers can kick in for closing costs
If you are considering an FHA loan, I would encourage you to read this article in the Wall Street Journal.
