The Federal Housing Administration (FHA) has announced a reduction in the timelines someone has to wait to purchase a home after a bankruptcy, short sale, or foreclosure. This is a great thing!!! Time to get excited!!! WOO HOO!!!
In the past you had to wait 2 to 5 years depending on your circumstances if you went through the loss of your home. Different lenders had their own criteria, however, it was all in line with the guidelines that FHA had set. The typical wait time was 2 years from the discharge of your bankruptcy and 3 years from the recording of the foreclosure deed.
Those times have been cut down to 1 YEAR!!! But the borrower has to meet a few criteria. Listed below are those criteria according to the FHA Document “Mortgagee Letter 2013-26, published on August 15, 2013.
Household income fell by 20% for at least six months
Income drop was due to unemployment or an event beyond the borrowers control
Borrower takes a 1 hour approved housing counseling class
Have 1 full year of verified housing payments on time (rental)
Now some say that they put the hook out there to get you hungry but then make you do all these things in order to get it. Well, we look at it as an opportunity for homeowners to get back into that home with minimal requirements. A lot of our clients that have sold their home as a short sale will qualify for this home and will be a great opportunity for them to once again be involved in home ownership. Why pay someone else’s mortgage when you can pay your own???
Do you qualify for this opportunity? Call us today and we will get you in touch with the best lenders in the state!!! They will work through your financial situation, get you pre-qualified and we will get you in that home before Thanksgiving!!!
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