Change Brewing on FHA Loans

What's the difference between 3.5 percent down payments and 5 percent down payments? More than 300,000 home sales, the head of the Federal Housing Administration is telling Congress. FHA-insured mortgages currently require the lesser percentage, but some leaders -- anxious to avoid another bailout -- think the agency would be on stronger footing if it upped the down payment to 5 percent. FHA Commissioner David H. Stevens responded Thursday that this would lead to plagues of locusts o'er the land.

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