"To receive F.H.A. backing on their loans, borrowers must have a credit score of at least 580 out of a possible 850, and they are required to put down at least 3.5 percent. F.H.A. allows the borrowers whose loans it insures to have a monthly housing debt payment of around 30 percent of their incomes."
Kenny Bing translation - very sketchy borrowers with a fair number of pay day loans can buy a shack so long as they can beg, borrow or steal 3.5% of the total price and F.H.A. will lend them the remainder...what could go wrong??!??
"Still, 40 percent of the 2010 loans in the F.H.A.’s insurance portfolio were made to borrowers whose total monthly debt payments were greater than 50 percent of their monthly incomes or had a credit store of less than 660, the study found, a dangerous level."
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