New Ruling Makes It Easier To Get an FHA Loan For Some


A new rule prohibiting homebuyers from getting a Federal Housing Administration mortgage if they owe more than $1,000 in outstanding collections accounts could cut demand by up to 20%, according to banking analysts.

The rule went into effect April 1. If a borrower enters into a payment plan on these accounts, then an exemption could be granted. Also, the FHA clarified the rule this week, stating if a borrower documents the collections account stems from a “life event” such as a medical bill, divorce or loss of employment, he or she could still qualify for the loan.

On the bright side, it means that someone with $999 in collections will no longer be impacted or required to pay these to qualify.

 

 

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About Safe Haven Credit

I don't much like the pompous attitude of the credit bureaus and the damage they have caused consumers and businesses, so I like to rant about it here...
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