About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
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There was a pretty good article over at the Washington Post on the tightening of FHA lending guidelines coming down the road. Here are some excerpts:

— Higher down payments. The FHA’s current minimum cash down payment is 3.5 percent. On a $200,000 house, a buyer can bring as little as $7,000 to the table, aside from closing costs. A purchase of a $500,000 house in a high-cost area requires only $17,500 in cash.

Critics say 3.5 percent does not force purchasers to have enough “skin in the game” to discourage them from missing payments or risking foreclosure. Rep. Scott Garrett (R-N.J.) introduced legislation last month requiring a minimum 5 percent down payment for all future FHA loans. …

Comments (0) Posted by G.R.A. Admin on Tuesday, December 1st, 2009


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