Minneapolis, MN: Recently FHA announced in mortgage letter 2013-26 the ability to FOREGO the current three year waiting period for Foreclosures and Short Sales before you can qualify for an FHA Loan if the borrower had an ECONOMIC EVENT that created a hardship.
It has been brought to my attention that many real estate agents are now advertising this, WITHOUT GIVING THE FULL STORY. Borrowers MUST MEET VERY STRINGENT guidelines in order to qualify for this EXTENUATING CIRCUMSTANCE.
Here is the link to the actual Mortgagee letter for your reference. Please read this so you understand what is required.
But there is more... Just because FHA indicates they may insure a loan meeting these guidelines, you need to understand that FHA DOES NOT DO LOANS. Lenders do loans, and you will still need to find a lender willing to offer loans under these new guidelines.
My experience tells me that very few lenders will jump on board to offer this product, so be sure to cross your T's and dot your I's before you get too excited about suddenly being about to get an FHA Home Loan with a recent foreclosure or short-sale.
Usually it will take a few weeks to see ramp up new programs, and guidelines after they are announced, so only time will tell.
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