4:13 AM by Debbie Dragon

Ever since the housing market bubble burst, FHA loans have been in high demand. With tighter lending standards in place for conventional loans, more people have no other option other than an FHA backed mortgage. While FHA loans are still only made available to credit worthy applicants, the criteria is not quite as stringent. Applicants need only put 3.5 percent for a down payment, making these loans in reach for many first-time homebuyers.

Due to the high demand of these loans, the FHA has eaten through their reserve funds. What is supposed to be a 2 percent reserve cushion has dwindled to just 0.5 percent. As a result, FHA loans will now come at a higher price tag for consumers. Starting on April 18,

View the Original article