A study from the General Accounting Office has found that two-thirds of FHA-insured borrowers in 1995 would have been rejected by private insurers for failing to meet loan-to-value and qualifying ratios.

Among low-income and first-time homebuyers, the percentage was even higher. Seventy-seven percent of first-time homebuyers who took out FHA loans, and 85% of low-income FHA borrowers in 1995 would not have met those standards, the report said.

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