The Federal Housing Administration (FHA) is considering three policy changes to boost its capital reserves. Under the changes, new borrowers seeking FHA-insured loans will need a minimum FICO score of 580 to qualify for FHA's 3.5% downpayment program. New borrowers with credit scores between 500 and 580 will be required to provide a 10% downpayment, and borrowers with credit scores below 500 will no longer qualify. The US Department of Housing and Urban Development (HUD) published a notice today seeking public comment on the measures, which are designed to reduce financial risk and preserve affordable mortgage finance. HUD will accept public comment for the next 30 days on the proposed changes. "These are the latest in a series of changes to allow the FHA to manage its risk better while continuing to support the nation's housing recovery," said FHA commissioner David Stevens in a press release.