The Federal Reserve Board is changing the rules that have long barred veterans from purchasing new homes, in a move aimed at helping struggling homeowners.
The rules, which go into effect in March, would give veterans more time to get a mortgage on their first home in order to qualify for loans.
The current requirement is for veterans and spouses of veterans to have at least 30 percent equity in their new home.
Under the new rules, veterans would have three years to qualify on their own.
The Fed is moving to ease veterans’ restrictions by allowing them to apply for mortgage loans that were previously not allowed.
Under current rules, only veteran spouses and widows could apply for mortgages.
The new rules would allow a spouse of a veteran or veteran spouse of another veteran or spouse of the veteran to apply, too.
The Federal Reserve board said Wednesday that it expects the changes to take effect in July.