March 11, 2010
Start smiling, especially if you’re a homeowner who had, or is going through, a short sale. It’s now possible for you to purchase another home through FHA without waiting 2-3 years. Sweet, huh?
In short sales, a home is sold for less than what is owed due to unforeseen and unplanned circumstances, including a serious illness or the death of a family member. If for medical reasons, the owner had to wait two years before purchasing again. For all other reasons, the wait was three years.
The FHA has eliminated the wait period. At the heart of the change is the belief that catastrophic situations should not be held against owners who were forced to “short change the bank.” They simply require tangible proof of the situation and that mortgage payments are kept current through the close of escrow.
Everyone can appreciate that a home has emotional and personal value. The thought of losing it is especially more devastating when dealing with a personal crisis at the same time. With so much sentimental and financial investment at stake, it’s very exciting to see all the great changes evolve in the lending industry these days.
While income and credit requirements remain unchanged, the door to another home, new or re-sale, is now open. If you, or someone you know, experienced a short sale, this new policy – along with FHA’s attractive 3.5% down – can be very sweet indeed.
Future blogs coming on more good news for investors and owners of manufactured homes.