Source: The Three C's of Credit
The added clarity provided by the Federal Housing Administration s revised single-family handbook comes at the expense of lender flexibility to get loans qualified, including a popular workaround for borrowers with deferred student loan debt.
The government giveth, the government taketh away.
FHA just closed the loophole that allowed borrowers to not count deferred student loan payments in their debt to income (DTI) ratio, meaning borrowers will qualify for less than they were able to before. However, consumers with pending tax lien payments couldn't get a FHA loan, new rules allow borrowers with a payment plan and three months of on-time payments to qualify.
So...that's a wash, right? Wrong. "It tightens certain underwriting guidelines that were on the 'why people love FHA' list," according to a source named in the article.
Millennials think they know a lot about their credit score. Here's what they're missing.
Source: How you can avoid credit pain
Politics aside, what better indicator of an improved economy than a decrease in mortgages delinquent 90 days or more, meaning homeowners are better able to pay for their homes than they were...dare I say it, 8 years ago?
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