580 must have a 10% down payment. In 2009, less than 1% of all borrowers fell into this category because lenders are requiring minimum credit scores of 620. The FHA is facing tight cash reserves in the current economic conditions. While the FHA does not directly lend to homebuyers, it does back the loans protecting investors who buy the securities.
The National Association of Home Builders released a myriad of 2009 stats which included average home size is on the decline. This is a surprising number as shrinkage in average completed home size has not occurred since 1982. Builders are reporting that in spite of a slight shrinkage in home size, the following are considered essential inclusions: Walk-in master closets, laundry rooms, insulated front doors, great rooms, energy efficient windows and other energy efficient appliances, 9 foot ceilings on main level and separate bath/shower in the master bath. Some of the standards that are falling by the way side, according to the NAHB include: outdoor kitchens and fireplaces, desks in kitchens, two-story foyers, and multiple shower heads in the master shower/bath.
The White House has agreed to absorb uncapped losses by Fannie Mae and Freddie Mac according to the WSJ.com (http://online.wsj.com/article/SB10001424052748704381604575005242824023092.html?mod=WSJ_Real+Estate_LeftTopNews ). While this seems controversial, the move isn't nearly enough according to the GOP who would like to see the companies, formerly be absorbed by the government including the expression of fiscal loss on the Federal books.
