Monday, September 16, 2013

FHA Loans After Bankruptcy, Foreclosure, Short Sale: 2013 Rule Change

FHA Loans After Bankruptcy, Foreclosure, Short Sale: 2013 Rule Change

In most cases, the requirement is that 12 months have elapsed since the date of the event (foreclosure, short sale, deed in lieu). Bankruptcies are a bit different:
  • For Chapter 7 Bankruptcy, 12 months must have elapsed since the date on which the bankruptcy was discharged.
  • For Chapter 13, the requirement is that the bankruptcy was “discharged prior to loan application and all required bankruptcy payments were made on-time, or a minimum of 12 months of the pay-out period under the bankruptcy has elapsed and all required bankruptcy payments were made on time.”


Read more: http://www.homebuyinginstitute.com/news/fha-after-foreclosure-bankruptcy-463/#ixzz2f4Ql4gTy


  • The borrower’s credit report does not show any late payments on mortgage or revolving credit accounts.

  • Mortgages must be current with a history of at least 12 months of satisfactory payments.



  • Read more: http://www.homebuyinginstitute.com/news/fha-after-foreclosure-bankruptcy-463/#ixzz2f4QsSrWZ


    In this context, an Economic Event is something beyond the borrower’s control that results in income loss, job loss or both. The Economic Event must have reduced the borrower’s household income by 20% or more for at least six months. To qualify for an FHA loan, borrowers must have re-established Satisfactory Credit for at least 12 months

    Read more: http://www.homebuyinginstitute.com/news/fha-after-foreclosure-bankruptcy-463/#ixzz2f4Qz8OVI