FHA Loosens Rules, Lowers Barriers
by Kenneth R. Harney
The federal government's biggest home mortgage program streamlined itself at the end of December, and that could be good news for buyers, sellers, real estate agents and builders.
The Federal Housing Administration's decision to eliminate or soften many of its onerous rules about property conditions and mandatory repairs should be a stimulant to the entire housing market this year. It could help open low-down-payment mortgages with no prepayment penalties to thousands of first-time, moderate-income purchasers who might otherwise have turned to higher-fee, subprime alternatives. (Read Full Article)