FHA Changes Will Hurt Home Buyers, Industry...
From Times Staff and Wire Reports
FHA Changes Will Hurt Home Buyers, Industry Says: A proposal passed by the Senate to require home buyers to pay a 3.8% insurance premium in cash at closing to qualify for a Federal Housing Administration mortgage could lock out 35,000 to 200,000 people annually from the housing market, industry officials said. Currently, the FHA allows borrowers to fold the premium into the total value of the loan. Administration officials said the plan would lower default rates.
