Home buyers might soon have to bring more cash to the table to qualify for Federal Housing Authority-backed mortgages. The FHA mortgages, which now make up 30% of originations, have surged in popularity because borrowers need a down payment of just 3.5% to qualify, but the housing crisis has battered the agency’s reserves.

Housing & Urban Development Secretary Shaun Donovan outlined options for the FHA before the House Committee on Financial Services on Dec. 2. He said the agency’s capital reserve ratio has fallen to 0.53%—far below the 2% level required by law.

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