The Federal Housing Administration is changing a rule that will make it more flexible for home sellers to schedule closings without being penalized by interest charges.

Currently, FHA borrowers selling or refinancing a home must make a full month's interest payment whether they close on the fifth day or 20th day of the month. To avoid this extra charge, closings on FHA-insured loans are generally scheduled toward the end of the month.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.