FHA-guaranteed mortgage: new rules for home loss

If you lost your home during the recession (either through foreclosure or “short sale”), or went bankrupt; and you can show that your problems were caused by a job loss, or reduction in income that was beyond your control; you may be eligible to receive a new mortgage backed by the Federal Housing Administration (FHA) in as little as one year. This is down from the current three-year limit.

To qualify you have to show that your income has had a full recovery and take housing counseling from a federally certified agency.

The FHA currently offers the most flexible lending standards in the country, requiring as little as 3.5% down.

In the last four years, some 3.9 million homes have been lost to foreclosure.

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