FHA Suspends New Debt Rule

TamlynFHA, Financing News

Last week, a new FHA rule was to have gone into effect that would have mostly barred borrowers with more than $1,000, in disputed debt, from getting an FHA-backed mortgage. According to some estimates, as many as 20% of potential  FHA borrowers would instantly have become ineligible. The domino effect on the economy could have been significant. The FHA has delayed implementation of the rule until July, in order to further analyze its potential impact.