Wednesday, January 20, 2010 |
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The Federal Housing Administration will
raise the minimum down payment for its least credit-worthy borrowers,
agency announced Tuesday.
Borrowers with credit-rating scores below
580 will be required to put down at least 10 percent. Those with a
credit score above 580 will be able to continue to put down only 3.5
percent. The changes are intended to shore up the agency's finances.
The FHA also will increase its upfront
mortgage insurance premium from 1.75 percent to 2.25 percent. The
agency is expected to seek congressional approval to raise annual
mortgage insurance premiums, paid by borrowers over the life of the
loan, above the current 0.55 percent maximum. The amount it will seek
has yet been announced.
Source: Reuters News, Corbett B. Daly (01/19/2010) |
Wednesday, January 20, 2010 2:19:48 PM (Eastern Standard Time, UTC-05:00) | | Featured | Home Finance
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