FHA Home Loans - Santa Rosa, CA - New Short Sale Rules 2010

Mortgage and Lending with FHA, VA, Conforming, Jumbo - Wells Fargo Home Mortgage

FHA Home Loans - Santa Rosa, CA - New Short Sale Rules 2010

House for saleI don't know if this has been mentioned, but it's well worth noting. FHA has loosened up the guidelines for home owners who had to go through a short sale of their owner occupied home. This new change will allow home owners who went through a short sale to re-enter the real estate market as home buyers again. If you think about the number of previous home owners who were locked out of the real estate market, you'll understand the significance of this change in the FHA short sale rules for 2010. Millions of home owners will be able to buy a home again with a home loan! That means more transactions for the real estate industry! I can see the wave of buyers building in the horizon already. It's just a matter of time for this news to take hold of the consumer market.

Here's the gist of it new rule changes:

  • FHA will insure home loans for borrowers who sold their home through a short sale to pay off their current mortage in full and who kept all their debt obligations current, including their mortgage on the date of the mortgage application. FHA will require a 12 month history of all mortgage and debt obligations to be current.
  • FHA wil allow for a borrower to refinance their home loan in a short pay off if the original lien holder will write off the amount of money that cannot be financed due to a decline in the home value. The home owner must be current at the time of application with a 12 month credit history.
  • FHA states borrowers are currently not eligible for a new FHA loan if they went through a short sale to take advantage of the market by buying another, lower priced home, while they sole their current home through a short sale agreement.
  • FHA will not allow borrowers who are in default of their home loan at the time of the short sale to participate in acquiring a new FHA insured loan.

If you want to see the actual document from FHA, here's a link to the pdf version of the Mortgagee letter 09-52 Dated December 16, 2009.

Just in case you didn't read my other postings that are FHA related, here's a quick list:

Thanks for stopping by and reading my post title,"FHA Home Loans - Santa Rosa, CA - New Short Sale Rules 2010." I hope it was informative and helpful. Please feel free to contact me if you have any questions about this subject or about home loan financing in general. I'm happy to help.

Posted by


Anthony Ebright NMLSR ID #247647

Home Loan Officer / FHA and VA Specialist




You can reach Anthony Ebright at 707-548-0752 if you need help refinancing or purchasing your home in Sonoma County, Santa Rosa, Healdsburg, Petaluma, Rohnert Park, Sebastopol, Bodega Bay, Windsor, Cloverdale, Guerneville, Sonoma.



Anthony Ebright is a Home Loan Officer in Santa Rosa, California. His opinions and statements are his own. Wells Fargo does not endorse any comments made by its employees on this blog. All statements and viewpoints expressed in the comments are strictly those of the commenter alone, and do not constitute an official position of any lending institution.


Copyright 2009. © Anthony Ebright. All rights Reserved.
NMLSR ID #247647

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Lending / Financial
California Sonoma County Santa Rosa
The Lounge at Active Rain
Real Estate Rookie
Northern California Real Estate Professionals
short sales
sonoma county
new rules
fha home loan

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Anthony Ebright - NMLSR ID #247647 Purchase and Refinance Mortgages

Ask me a question

Additional Information