FHA Corrects Borrow Qualification Criteria for FHA-HAMP Option

FHA corrected borrower qualification criteria for the FHA-HAMP option in the Single Family Housing Policy Handbook. FHA updated the handbook to state that the borrower’s existing front-end ratio must be greater than 31% (rather than less than or equal to 31%), or 85% of the borrower’s income must be insufficient to cure arrears within 6 months. The correction is effective immediately.

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