Can These Changes to the FHA Program Help You Find New Homebuyers?

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 .

 

Remember that if you need any further questions answered, you can always contact me at 314-744-7806 or by contacting me at the link below...

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