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Carrie Courtney's Blog

Changing Latitudes Real Estate & Property Management

By Carrie and Dave Courtney | Agent in Orlando, FL

Great News!!! FHA Allowing Loans After Foreclosure & Shortsales

FHA New RuleGREAT NEWS!!! for those that have gone through recent financial hardship...

The FHA has made it drastically easier for once-struggling homeowners to qualify for an FHA loan. 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. 

"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. 

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!

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Feel free to contact me 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

Changing Latitudes Real Estate

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