FHA Raises Premiums, Down Payments Amid Mortgage Delinquencies
By Dawn Kopecki
Jan. 19 (Bloomberg) — The cost of a government-guaranteed mortgage will be more expensive for U.S. homebuyers as the Federal Housing Administration raises insurance rates and tightens credit-score rules to combat a rise in delinquencies.
The premiums FHA charges to insure mortgages will rise to 2.25 percent from 1.75 percent this year, the agency said in a statement today. Borrowers who have credit scores below 580 will also have to make down payments of at least 10 percent, and allowable seller concessions will be cut by half. read the article here… FHA Raises Premiums, Down Payments Amid Mortgage Delinquencies – BusinessWeek.
