How to Get FHA Loan Mortgage 1 Year After Bankruptcy or Foreclosure
The Federal Housing Authority has announced it is shortening the mandatory waiting periods for homeowners with a black mark [economic event] on their credit, such as a short sale, deed-in-lieu, foreclosure or even bankruptcy, to buy again through an FHA loan.
Instead of waiting the mandatory three years before qualifying for a new loan, buyers must prove, over the period of a year, that they are back on track financially.
The new deal is part of the FHA’s Back to Work – Extenuating Circumstances Program, which allows borrowers who lost their homes due to financial hardships to be eligible for an FHA mortgage much sooner than before.
The main ingredient in the program is that borrowers must that the prove they suffered from a loss of income of 20% or more, that lasted 6 months or more, directly causing the bankruptcy or foreclosure, or both!
Source CBSNews.com > Read full story http://www.cbsnews.com/8301-505145_162-57600161/