Tuesday, May 24, 2011

FHA loans may require a 5% down payment

US House Republicans are kicking around a proposal to raise the minimum down payment on FHA loans to 5% and may drop the maximum loan balance to about $625K. This action may reduce the number of FHA loans, but will tend to increase the performance by requiring "greater" investment by the Buyer. It all depends on which end of the argument you sit, but there's alot of heat against this by the Realtor community.

Source:  http://therealdeal.com/newyork/articles/house-republicans-make-moves-to-curtail-fha-backed-loans

Source: http://www.washingtonpost.com/business/economy/gop-proposes-increase-in-fha-down-payments/2011/05/23/AF3NX69G_story.html

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