FHA Avoids Backing More Loans

In light of the recent reports regarding the state of the FHA, the Bush Administration has warned that taking on more bad loans may hurt taxpayers and worsen the effects of the housing crisis. New, higher loan limits were announced in March, which have opened up the market for FHA loans and have helped out numerous homeowners in high priced areas. The FHA cites that these increased loan limits should be made permanent in order to aid the housing market, and that cutting mortgage backing could result in weakening the agency as a whole.

For the complete story, please visit:
http://money.cnn.com/2008/06/09/real_estate/FHA_ban_on_downpayment_help/index.htm?section=money_realestate