New FHA measures may cost home buyers

The Federal Housing Administration will raise mortgage insurance premiums, update requirements for so-called FICO credit scores and down payments for new home buyers and take other measures designed to shore up the agency’s low capital reserves.

The FHA, which insures mortgages, also will reduce allowable seller concessions to 3% from 6% and institute a number of measures to increase lender enforcement, the agency is expected to announce today.