GREAT NEWS!!! for those that have gone through recent
The FHA has made it
drastically easier for once-struggling homeowners to qualify for an FHA
loan.Â The Federal Housing Administration has announced in a letter to mortgagees
that it will reduce the time homebuyers must wait after a bankruptcy,
foreclosure or short sale before qualifying for an FHA-backed mortgage. The
period had previously been two years following a bankruptcy, and three years
following a foreclosure or short sale. The agency has now reduced the waiting
period to one year.Â
"FHA recognizes the
hardships faced by these borrowers, and realizes that their credit histories may
not fully reflect their true ability or propensity to repay a mortgage," FHA
Commissioner Carol Galante said in the letter.Â
But fulfilling the new, more
lenient waiting period won't automatically qualify borrowers for an FHA-backed
loan. Borrowers will have to show that they experienced an "economic event"
whereby their household income fell by 20% or more for a period of at least six
months. They must also demonstrate that they have fully recovered from the
event,and agree to complete housing counseling prior to closing. Call to discuss!
Feel free to contact meÂ at your convenience for a no obligation conversation about your real estate needs in the Central Florida area!
Carrie Courtney, Accredited Buyer Representative
Changing Latitudes Real Estate