Did you have a short sale and were told you had to wait 2 years before you could buy a house?
Well that changed August 15th 2013. There is a new FHA program called Back to Work that allows people who suffered during the financial crisis who have recovered to now buy houses without the full waiting period.
Lenders must document that the borrower lost their job or suffered a significant reduction in income due to circumstances “beyond their control” and the borrower has demonstrated a full recovery from the event,” Aug. 15 Mortgagee Letter says.
See article FHA-Issues-Guidelines-Back-to-Work-Lending-Program-1038235-1
The FHA has waived its 3-year foreclosure waiting period.
Borrower to show a minimum credit score of 500; to have downpayment of at least 3.5% on a purchase; and, to verify income via W-2 or federal tax returns.
I just did a radio show in Ann Arbor with lender Kevin Weedmark this morning on WTKA 1050 am who gave me this news. So today The Toth Team in Ann Arbor will be contacting all our past distressed clients to let them know about this.
So any of your short sale, bankrupt, or foreclosed clients can now evaluate readiness without waiting to buy.
Our Washtenaw County current FHA limit is $345,000.
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