IT IS ABSOLUTELY TRUE!!
FHA is reducing the amount of time a borrower must wait in order to receive an FHA-insured mortgage. It was at three years, now the FHA allows eligible borrowers to receive an FHA-insured loan in as little as one year. Eligible borrowers include those who experienced unemployment or other severe reduction in income and were unable to make their monthly payments, and ultimately lost their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure (including a short sale).
FHA is allowing for the consideration of borrowers/buyers who have experienced an economic event and can document that:
â€¢ Certain credit impairments were the result of a loss of employment or a significant loss of Household Income beyond the borrowerâ€™s control;
â€¢ The borrower has demonstrated full recovery from the event; and,
â€¢ The borrower has completed housing counseling.
â€¢ Can document that the delinquencies and/or indications of derogatory credit are the result of an economic event as defined in the mortgagee letter,
â€¢ Has completed satisfactory housing counseling, and
â€¢ Meets all other HUD requirements.
If you have questions please do not hesitate to call me!
John L Johnson II
CA DRE Broker Lic# 01312900
J-N-J Real Estate Services, Inc.
8560 Vineyard Ave. #404
Rancho Cucamonga, CA 91730
Sales â€“ Leasing â€“ Property Management