Borrowers who filed bankruptcy or have a foreclosure on their record just got a break from the Federal Housing Administration.  Borrowers do not need to wait for three years to apply for an FHA-insured loan after a bankruptcy or foreclosure.  They can now apply after only one year of making rent and credit card payments on time.  However, to qualify, their foreclosure or bankruptcy must have been due to external economic factors that reduced their income by 20% or more for six months or more.

For more details read, “FHA eases rules for some borrowers after bankruptcy, foreclosure.”