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Renters are buying again as US financing for homes becomes cheaper

FHA loans have become cheaper after insurance premiums were cut last year, giving a lift to US home ownership rate

PROS AND CONS: The US Department of Housing and Urban Development estimates the decrease in annual mortgage-insurance premiums will save borrowers an average of US$900 a year. However, the increase in FHA loans may bring added risk that would become apparent the next time the US economy tumbles.


ERIN Maude returned to homeownership in December, three years after losing her condo in the US foreclosure crisis. This time, she's confident she'll keep the house she bought with the help of a 14 per cent raise and a Federal Housing Administration loan, which required little money