Worthington, OH -- (SBWIRE) -- 09/17/2013 -- As a result of the recent great recession many borrowers experienced unemployment or other severe reductions in income that caused them to lose their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure. Some borrowers were forced to file for bankruptcy to discharge or restructure their debts. Because of these recent recession-related periods of financial difficulty, borrowers' credit has been negatively affected.
Help is here! As of August 15th, 2013, FHA is allowing borrowers who have experienced an Economic Event and can provide the proper documentation to verify that event, to be eligible to buy again in one year after the event.
Eligibility for borrowers affected by an Economic Event
FHA insured mortgages usually have a waiting period for bankruptcies, foreclosures, deeds–in–lieu, and short sales, as well as for collections and judgments. However, with this new mortgage program just announced, borrowers may be eligible for an FHA mortgage sooner if they:
- Can document that their problems in the past were a result of an economic event
- Have completed satisfactory housing counseling
- And meet all other HUD requirements
Borrowers will have to show that they experienced an "economic event" such as Loss of Employment, Loss of Income, or both and that their household income fell by 20% or more for a period of at least six months. They must also demonstrate that they have fully recovered from the event and have reestablished Satisfactory Credit for a minimum of 12 months. A very important aspect of the new program is Housing Counseling. The borrower must attend a HUD approved Homebuyer Counseling Program at least 30 days prior to the new application, but no more than 6 months prior to the application.
As with many new programs, there are lots of guidelines and requirements. Call me to see if you qualify at 614.388.8757 or apply at www.OhioMortgageDude.com .
This new program was released from HUD as Mortgagee Letter 2013-26. See the HUD mortgagee letter 2013-26 here