Many potential homeowners who have taken on second jobs to help afford a loan are having their applications denied due to a new federal rule requiring two years at a part-time job before the income can be counted in an application.
The Ability to Repay rule was introduced in January by the Consumer Financial Protection Bureau to ensure those applying for mortgages could afford them. Banks may waive the two-year rule, but many don’t for fear of penalties from misinterpretation.
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