FHA loans are among the most popular home loans these days. With banks still skittish, only the most attractive borrowers can get loans without a government guarantee.
It's about to get a little more difficult and expensive to use FHA loans. For now, you can buy a home with 3.5% down. That number may go up, at least for borrowers with low credit scores. Mortgage insurance fees will also change going forward.
FHA hopes these changes will help them stay on solid ground. The FHA reserve fund, used to pay banks when loans go sour, suffered dramatically in recent years. With more and more people using FHA loans, there are now even more loans to cover. The goal is to stabilize the fund with higher fees and standards.
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