FHA LOWERS THE BAR- 1 YEAR AFTER-FORECLOSURE, BK, AND SHORT SALE
On August 15, 2013 the Federal Housing Administration announced a new option for Borrowers that had a serious economic event happen to them during the recent recession. The FHA defines a Economic event as either a loss of income greater than or equal to 20% or Loss of employment for at least 6 months that eventually led to either a Foreclosure, BK, Deed and lieu, Modification, or Short sale.
How do I prove a loss of 20%? Tax returns, W2s or Verification of Employment during and prior to this event.
How do I prove a Employment loss? Last paystub during this period and Verification of employment and or Tax returns, Unemployment benefits during this period.
What else will be required? 12 months of current housing history, Credit Counseling, and Reestablished credit history
What will be the terms? Standard FHA pricing, up to 96.5% financing, and FHA mortgage insurance
When will this begin and end? As of August 15, 2013 FHA now allows this but it is still up to the Lender to offer this. This option will be available until September 30, 2016.
For more details Contact your Mortgage Lender or Call me..
Robert Cloud
Branch Manager
Pinnacle Capital Mortgage
602-282-3880 direct
CA-DOC -319471
AZ-81395
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