FHA Waiting Period
In a move that reflects the reality of the economic downturn that caused many people to lose their jobs or have their pay drastically reduced, it was recently announced that the FHA waiting period to be eligible for an FHA mortgage has been reduced from 3 years to 1 year after a foreclosure, short sale, deed in lieu or bankruptcy.
Borrowers must meet some fairly strict criteria to take advantage of this policy change:
…In order to be eligible for the more lenient approval process, provided documents must show “certain credit impairments” were from loss of employment or loss of income that was beyond the borrower’s control. The lender also needs to verify the income loss was at least 20 percent for a period lasting for at least six months.
Additionally, borrowers must demonstrate they have fully recovered from the event that caused the hardship and complete housing counseling.
This is good news for potential buyers who have found new jobs or had their pay reinstated, allowing them to make timely payments on their remaining debt.
For information on New Orleans FHA lenders that we’ve worked with in the past, just give Crescent City Living a call at (504) 327-5303. It would be our pleasure to help you find your way back into a home.