Some are calling it the new Miracle Loan and it could greatly help thousands of Las Vegans buy their next home. FHA has announced it will now approve some buyers who are only one year out from a short sale, foreclosure or bankruptcy to purchase a home.
Certain requirements exist in order for a buyer to qualify for the FHA loan. First, the buyer must prove that there was an event which caused a significant loss of income due to a job loss or other circumstances beyond the borrower’s control. The borrower must also show that they have recovered fully from the event. Finally, the borrower must go through housing counseling. The counseling will help borrowers understand loan options, assist in creating a household budget, help them avoid scams and be better prepared for future financial shocks.
Due to the recent economic downturn and related events such as bankruptcy, short sales and foreclosures, the FHA realizes borrowers’ credit has been negatively affected. They have made the change in loan qualification realizing that borrowers credit histories may not fully reflect their true ability to repay a mortgage.
For more information, contact the FHA Resource Center at 1-800-CALLFHA (1-800-225-5342).