Can these changes to the FHA program help you home buyers?
The
FHA has recently released new information that they have now shortened the
waiting period after a foreclosure, short sale, or bankruptcy for a prospective
buyer to qualify for an FHA insured home loan. The waiting period used to
be 2 years for bankruptcy and 3 years for either a foreclosure or a short
sale. Now, if your buyer can show evidence that they had experienced
an "Economic Event" (any occurrence beyond the borrower's control
that results in Loss of Employment, Loss of Income, or a combination of both,
which causes a reduction in the borrower's Household Income of 20% or more for
a period of at least 6 months), they may be eligible earlier to re-enter the
home buying market.
This
change isn't going to help everyone who had a bankruptcy, short sale, or
foreclosure - but it certainly does help increase the buyer pool
For
more information about this, ask your Loan Professional about FHA Mortgagee
Letter 2013-26, and click the image below to read the actual Mortgagee Letter
or follow this link: http://goo.gl/0zuUkW .
-Michael
Corboy
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