New FHA Guideline


On August 15, 2013, the Federal Housing Administration announced a new guideline for availing FHA loans. Borrowers 2140 Amiel Whipplewho once lost their Flagstaff real estate through foreclosure and short sale due to an economic event no longer have to wait 3 years to qualify for a loan. This guideline is effective for case numbers assigned from August 15, 2013 to September 30, 2016. 


"FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage,” FHA Commissioner Carol Galante said in the letter.


Who is Qualified?


Buyers who can document they lost their home to foreclosure or filed for bankruptcy because they were laid off or because their income was reduced by at least 20 percent will be eligible to apply for a loan.

Loss of Income must be documented in one of two ways:


A written Verification of Employment documenting date and amount that income dropped, and when it was restored or, signed tax returns or W-2s showing minimum 20% loss in Household Income.

Loss of Employment must be documented by providing the lender:

A written Verification of Employment (VOE) showing termination date, or in cases where the prior employer went out of business,a written termination notice, or other publicly available documentation of the business closure, and documentation of receipt of unemployment income


When Can I Buy Again?


Boomerang homebuyers, buyers who lost their home through foreclosures and shortsale, can buy again in with 12 months of on-time payments and by providing proof of recoverery from an Economic Event.

Under the Back to Work Extenuating Circumstance exception, one can buy after bankruptcy, foreclosure, short sale or deed in lieu of foreclosure that was the result of a minimum 20% drop in income or loss of employment over a minimum of 6 month period.


Qualified and want to buy a new home?


Let your broker know if you are certain that you defaulted on a FHA, VA or USDA guaranteed home loan. Make sure to ready and provide the documentation needed. This will save you a lot of time in the escrow process. Borrowers will also be required to go through housing counseling prior to being approved for the loan.

We can help you purchase your new Flagstaff real estate.  Call Kelly at 888-446-5602 or drop by at our office at RE/MAX Fine Living 3955 E. Lake Mary Road, Flagstaff AZ .