Bill to loosen restrictions on FHA moves to Senate

Zero-down loans, higher limits could allow FHA to better compete with subprime lenders

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Home loan borrowers of limited means might again be able to obtain FHA-backed home loans instead of going to more expensive subprime lenders if Congress gives the Federal Housing Administration greater discretion in deciding what types of loans it will back.

In areas of the country where the cost of housing is high, the FHA has lost market share because of limits on the size of loans it can insure.