PHILADELPHIA (CBS) – Late March typically marks the start of the home-buying season in the United States. On Tuesday, the Federal Housing Administration is tightening standards for first-time home buyers.
The FHA is concerned that it’s allowing too many risky loans to be extended.
The agency said more loans will be flagged as high risk and go through a more rigorous, manual, underwriting process.
The FHA tries to boost home ownership by insuring loans to borrowers with below average credit.