More than just real estate

FHA Raises Premiums, Down Payments

The cost of a government-guaranteed mortgage for U.S. homebuyers will be increasing from 1.75 percent to 2.25 percent, as reported today by Bloomberg. The Federal Housing Administration is raising insurance rates and tightening credit scores in an attempt to combat the current 14 percent delinquincy rate.

FHA Commissioner David H. Stevens calls this a “necessary move,” while pointing out that officals are seeking to ensure that “the changes that we implement do not overly disrupt housing finance markets at a most critical time in this economic recovery.”

To learn more about the issue, and what this may mean for you, click here.

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