The Federal Housing Administration (FHA) back relaxed some on a rule announced earlier. FHA says it will give borrowers a chance to explain any disputed collection accounts in their history in order to qualify for an FHA-backed mortgage.
Under FHA’s new rule, borrowers with any credit disputes greater than $1,000 on file will not be able to get the government-backed loan. As first announced, borrowers either have to pay the remaining balance of the credit amount or show proof of entering into a payment plan for it.
Borrowers will be exempt from the new rule if the credit amount is from a “life event"-which might include a medical bill, death, divorce or unemployment.
Also starting on April 1, the FHA raised its insurance premiums, citing it as another effort to try to rebuild its emergency fund, which has fallen below the mandated amount Congress requires
Friday, April 6, 2012
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