Hello! This is a little good news for anyone that has short sold their house and wants to buy another property with an FHA loan.
Please remember that it will only fit a handful of our buyers since the majority of our short sales are because people couldn’t afford their house or are selling because of decreased value.
Borrowers are considered eligible for a new FHA-insured mortgage if, from the date of the loan application all mortgage payments were made on time for the most recent 12 months PLUS all installment debts for the same time period were also made within the month due.
However, borrowers are NOT eligible if they pursued a short sale simply to take advantage of declining market conditions therefore they also must meet one of the following conditions:
(1) Borrowers are relocating and establishing residency in an area not within a reasonable commuting distance from the property that was/is being sold on short sale.
(2) Borrowers number of legal dependents increased to the point where the property sold as a short sale no longer met the family’s needs.
(3) Consideration may be given on a case by case basis to an empty-nester needing to scale-down but wants to remain in the same neighborhood.
Hopefully this information helps you or someone you know get qualified for a mortgage!
Let me know if you have any questions or concerns.
Have a great weekend!
