Buyers Face Higher Fees At F.H.A.

Mortgages backed by the Federal Housing Administration -- which allows a smaller down payment and has less stringent credit requirements than traditional mortgages -- are about to get a bit more expensive. But whether the higher costs will damp demand for these mortgages remains to be seen, experts say, since many borrowers have nowhere else to turn. The agency announced Monday that it would increase two types of fees that borrowers must pay. The goal, it said, is to help shore up its reserves, which had fallen sharply in the midst of the housing crisis, and to encourage private lenders to wade back into the still-struggling market. [ABSTRACT FROM PUBLISHER]