FHA Powers

As one of the few backers of low-down-payment mortgages in a time of stringent lender underwriting, the Federal Housing Administration has become a primary means of financing for U.S. home buyers, the Wall Street Journal reported today. However, as the government moves to reform the mortgage market, the FHA is heading for some changes that could limit borrowers' access to the loans or make them more expensive. About 56 percent of mortgages for a home purchase were FHA-insured in 2009, up from 6 percent in 2007, according to a report from the George Washington University School of Business. Many FHA borrowers are first-time buyers drawn by a down-payment requirement of just 3.5 percent of a home's purchase price

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