Reduced Waiting Period for Borrowers Who Experienced Foreclosure

Waiting Period is Reduced
Great news for borrowers!  If you have experienced bankruptcy, foreclosure, deed-in-lieu, or short sale, you may now reenter the mortgage market in as little as 12 months!

"Back to Work"
The Federal Housing Administration recently released a new mortgage letter acknowledging the hardships that many borrowers faced in "recent recession-related periods of financial difficulty".  Additionally, the FHA realizes that borrowers "credit histories may not fully reflect their true ability or propensity to repay a mortgage".

Who is Eligible
Eligibility is based on providing evidence that poor credit was not the fault of the borrower and that income loss was for greater than 6 months at a 20 percent reduction in income.  The borrower must also show that they have reestablished good credit for the past 12 months, and attend a housing counseling class.

Moving Forward

Designed to help potential buyers who are trying to get back on their feet after financial difficulty, these guidelines are effective until September 2016.

As you move toward your goal of homeownership, it helps to have someone in your corner!  Please do not hesitate to contact us with any questions you may have about the process, we look forward to hearing from you!



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