By Joe Light | The Wall Street Journal
Many low-down-payment borrowers—including first-time homebuyers—are returning to the market, boosting housing but raising concern among skeptics who worry about the risk of such mortgages.
Such borrowers had largely shied away from the market during the past two spring home-buying seasons, discouraged by weak wage growth and higher fees for loans with small down payments.
Now, lower unemployment and early signs of wage growth are boosting consumers’ finances. At the same time, a sharp fee reduction on loans backed by the Federal Housing Administration has cut the cost of a low-down-payment mortgage, stimulating demand.
Related: Aggregate market value of housing nearing 4Q06 peak
