FHA Changes May Mean You Qualify After an Economic Event 

Federal Housing Administration (FHA) made a big announcement last week – one that could impact borrowers who went through a financial hardship in the last few years.

Typically borrowers must wait a minimum of 3 years before they can qualify for an FHA loan, however, under these new guidelines, borrowers may qualify in as little as 12 months. Under the changes in the FHA guidelines, borrowers who went through a bankruptcy, foreclosure, deed-in-lieu or short sale due to an “economic event” may now qualify for a new FHA mortgage.

There are a few requirements a borrower will have to meet in order to qualify under these new “economic event” guidelines:

  • Loss of employment or signification loss of household income beyond their control
  • Must demonstrate full recovery from the event for 12 consecutive months
  • Must complete housing counseling

If you have experienced any of these economic events, you may be eligible for an FHA loan under the changes to the guidelines – even if you stopped making payments during a short sale – you may be eligible to buy a home now. If you would like to learn more about your ability to qualify, please give the Russo Team a call today.

602-864-1200
www.RussoTeam.com

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