FHA Offers Mortgage Insurance for the Credit-Challenged
If you lost your home to foreclosure, bankruptcy, or short sale during the recession, you may qualify for a new mortgage sooner than you think.
The Federal Housing Administration sent a letter to mortgage lenders stating that it would offer mortgage insurance to borrowers who once filed for bankruptcy, or who lost their homes through foreclosure or short sale.
What is required to qualify?
- Must prove that you are no longer financially challenged
- Must undergo housing counseling
- At least one year must have passed since the event that caused the foreclosure and/or bankruptcy
- The economic event must have reduced your income by a minimum of 20%
- Must meet all other FHA requirements
"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," according to the letter FHA sent to lenders.
If you think you may qualify, contact your lender, or contact us and we will put you in touch with a lender who will help you get pre-approved for a new mortgage.
Source: “FHA offers mortgage backing to the once bankrupt,” HousingWire (Aug. 16, 2013)
- Patty Bates's blog
- Login or register to post comments
All information is believed to be reliable, but is not guaranteed and should be independently verified with a real estate professional. Agency Real Estate is a member of the National Association of REALTORS® Equal Housing Opportunity.