News

FHA eases rules for some borrowers after bankruptcy, foreclosure

The Federal Housing Administration wants to make it easier for people who have defaulted on their mortgages to get a new home loan with FHA backing.

But there’s a catch. To qualify for the break, borrowers must show that their foreclosure or bankruptcy was caused by external economic factors, reducing their income by 20% or more for six months.

By E. Scott Reckard, Los Angeles Times