Are FHA Borrowers the Neediest?

USDA mortgages require, NO MONEY DOWN, VA mortgages require, NO MONEY DOWN, Conventional mortgages require, 3% DOWN and FHA mortgages require 3.5% DOWN.

The author below speaks about FHA borrowers and that they are the neediest. It is clear from the down payment requirements, clearly the FHA borrowers are required to put the largest of the 4 categories. Also all 4 categories have the same minimum credit scores. So how is it possible that these borrowers are considered the neediest?

Unfortunately, there are trouble times ahead for FHA when it comes to doing more mortgage volume in the future. Many of the new guidelines that take effect 4/1/13, such as the inability for a homeowner to cancel the monthly mortgage insurance, no matter how much equity someone has. Oh, did I mention an increase in fees?

If FHA wants to increase revenues to offset losses, creating rules and fees that will be harmful to the consumer will do just the opposite. 

FHA May Escape Bailout in the Short-Term

By: Rick Roque