Effective Immediately, FHA Waives Foreclosure Waiting Periods Via Its "Back To Work - Extenuating Circumstances" Mortgage Program
Update (Monday, August 19, 2013) : This FHA mortgage post is up-to-date as of today. Make sure you always get the most updated version of the FHA's rule book, which changes constantly.
The FHA has waived its 3-year foreclosure waiting period.
Effective for FHA Case Numbers assigned on, or after, August 15, 2013, borrowers with a recent history of bankruptcy, foreclosure, judgment, short sale, loan modification or deed-in-lieu can apply - and get FHA-approved - for an FHA-insured mortgage.
The FHA "Back To Work" Program Is Official
The Federal Housing Administration (FHA) was formed in 1934. 31 years later, in 1965, it became part of the U.S. Department of Housing & Urban Development (HUD).
The FHA's primary role is as an insurer of mortgage loans made by FHA-approved lenders. The FHA insures loans in all 50 states, all U.S. territories, and in the District of Columbia. Since its inception, the group has insured more than 34 million loans which makes the FHA the world's largest insurer of mortgages.
FHA mortgage insurance is available for any loan which meets the following two conditions :
- The loan must be made by an approved FHA lender
- The loan must meet the minimum standards of the "FHA Mortgage Guidelines".
The minimum standards of the FHA mortgage guidelines are straight-forward. Some of the more well-known rules require mortgage applicants to show a minimum credit score of 500; to make a down payment of at least 3.5% on a purchase; and, to verify income via W-2 or federal tax returns.