In case you haven’t heard, FHA has released some new guidelines to help homeowners who were adversely affected by the “recession”.  In the past borrowers who had a foreclosure, shortsale, or similar situation had to wait 3 years to purchase another home.  Now, in some cases, FHA is only requiring one year.  There is specific criteria that must be met, but this new guideline could open the door for more families to realize their dream of home ownership sooner.  FHA has recognized the hardships a lot of families faced and that their credit reports may not be telling the whole story.  This does not mean that if you were in over your head and got out that they will let you put yourself in that situation again.  They want to make sure you have recovered from your hardship and have demonstrated that you have taken the necessary steps to rebuild your credit and have adjusted to your current income levels.  They will also require you to complete housing counseling.  Housing counseling used to be for first time home buyers, but it is an important resource for not only first time home buyers but repeat home owners as well.  With all that being said, it is important that the consumer does their due diligence and educates themselves by using trusted professionals.  The Jennifer Sanchez team only works with the best and that includes our preferred lenders.  If you or anyone you know have been in this situation and you are wondering what to do next, please reach out and call us.  We will guide you in the right direction.  If you would like to read the FHA Mortgagee Letter you can get a copy by clicking on this link:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

Once there you will see the document number 13-26 and the title is Back to Work – Extenuating Circumstances