Don't Raise Down Payments on FHA Loans

Real Estate Broker/Owner with Mills Realty
If FHA raises the down payment on FHA loans I believe this would be a big mistake. I like some of their other ideas but frankly increasing anything right now would be a mistake. As Congress considers various ways to put FHA on sounder financial footing, FHA Commissioner David Stevens warned that now is not the time to raise the down payment requirement on a Federal Housing Administration loan. Congress has been considering various ways to put FHA on a sounder financial footing. Besides increasing the down payment requirement, another suggestion under discussion is raising the upfront mortgage insurance premium to 2.25 percent of the loan amount, up from 1.75 percent currently.

Comments (1)

Keith Landis
Keystone Home Finance - NMLS#834342 - Conventional - FHA - VA -USDA - Jumbo Programs - Direct Phone 412-726-1654 - Pittsburgh, PA
Pennsylvania - "Your Pennsylvania Mortgage Source"

Maximum seller concessions are also moving from 6% to 3%

Mar 17, 2010 05:28 AM