Federal Housing Administration Tightening Standards For First-Time Home Buyers

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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.

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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.