New FHA Changes Could Mean You Now Qualify 

Federal Housing Administration (FHA) has made changes to their guidelines that could mean you now qualify after an economic hardship.

Under the typical FHA guidelines, a borrower must wait at least 3 years before they can qualify for a new FHA loan. However under these changes, a borrow may qualify in as little as 12 months after what they consider an economic event, such as a bankruptcy, foreclosure, deed-in-lieu or short sale.

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 me a call today. Nate