Some great news for buyers looking at Denver Homes. According to a recent letter sent to mortgage bankers, the FHA has announced it is loosening restrictions regarding past bankruptcies and foreclosures affecting eligibility for mortgages. While the buyer would still need to qualify for the mortgage based on other factors (credit score, income verification, etc), the fact that a buyer has had a bankruptcy, short sale or foreclosure in recent years would not be a factor which would disqualify them from an FHA backed mortgage.
In the past, such negative factors would keep a buyer from qualifying for a minimum of 2 years and sometimes longer. With these new guidelines, buyers will be able to qualify after just 12 months.
Potential homeowners who fell on hard times during the recession are being offered a lifeline back into the housing market, via the Federal Housing Administration.
According to a letter sent to mortgage lenders, the FHA said it would offer mortgage insurance to borrowers who, during the recession, filed for bankruptcy or lost their homes through a foreclosure or short-sale proceeding.
The insurance is now available to those who can prove they are no longer financially compromised — and met all other FHA requirements.
This is great news for so many buyers in the market who have been relegated to renting for several years in order to qualify for a mortgage. If you had one of these negative events occur to you and would like to talk to one of our team members about qualifying now, call us at 303-726-1874.
With all of the down payment assistance programs that use FHA mortgages, this is a huge opportunity for buyers who thought they would be priced out of the market with rising prices and increasing rates over the next few years. Don’t wait to take advantage of this offer by the FHA!