July 2nd, 2012
The Federal Housing Administration recently stopped its implementation of new mortgage rules that would have hurt the chances of many borrowers from receiving mortgages with affordable terms, which could simplify corporate relocation efforts for transferees with credit disputes.
The changes were initially intended to begin at the beginning of July, and would have impacted any borrower looking for a mortgage with a low down payment that had collections or billing issues in dispute with their credit file. Any person with at least $1,000 in dispute would have been at a disadvantage when looking for FHA loan approvals.
The rules could have made a significant impact for some consumers, as up to a third of FHA borrowers may have some balances in dispute. Were the rules maintained, they would have had to settle the disputes before being considered for approval, even if they weren't considered a risky borrower.
This may aid businesses looking for a solution to a transferee's housing issues, as not every employee has pristine credit. FHA loans generally don't require a large down payment, which can he very helpful for first-time buyers or many others.