I don't claim to be an expert on US based mortgage programs, but I was watching the news yesterday and the News on TV had a story about how the US is tightening up their mortgage requirements. The Federal Housing Administration (FHA) announced that the new guidelines would require home buyers to have at least a 580 credit score and at least a 3.5% down payment. I had a good laugh thinking "these are stricter requirements?" I wonder what the requirements were before?
In Canada, to qualify for a mortgage, you will need at least 5% down. In order to qualify for only 5% down, Canadians have to have at least a 600 credit score.
Interestingly, the FHA was created in 1934, just after the Great Depression. The FHA was established to help more people become homeowners by providing insurance programs for purchases and refinances. The Canadian equivalent for the FHA would be the Canada Mortgage & Housing Corporation (CMHC). CMHC was not established until January 1, 1946, after the war to help returning veterans purchase a home.
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