FHA Raises Down Payment Requirement For Mortgage Loans
Since the financial crisis it has become more difficult to get a mortgage loan without a down payment. The Federal Housing Authority, or FHA, raised the minimum down payment required to get a mortgage loan to 3.5 percent of the loan value effective January 1, 2009. In addition to having enough money for a down payment, you also need to have a housing cost-to-income ratio of no more than 31 percent. Housing costs include homeowners insurance expenses, property taxes and the mortgage payment.