life HAPPENS ...
If you have filed for bankruptcy, experienced a short sale or a foreclosure, you should know that this will have or has had a major impact on your credit. You have either experienced or should expect a major drop in your credit and your ability to borrower funds.The bottom line is that It will be more difficult to qualify for a home mortgage.
The Good News is that purchasing a house is still within your grasp.
The Federal Housing Administration has thrown a lifeline to borrowers who have a life experience such as bankruptcy, short sale or foreclosure. If the borrower can document that their bankruptcy was caused by a hardship causing a decrease in household income by 20% or more instigated by either unemployment or alternate economic event; the borrower may qualify for a mortgage backed by the Federal Housing Administration.
In a letter issued by the Administration on August 15,
“... recognizes the hardships faced by these borrowers and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage,” written by Carol Galante, commissioner of the Federal Housing Administration.
You CAN get a mortgage backed by FHA after just ONE Year after bankruptcy, short sale or foreclosure.
There are certain restrictions surrounding the reasons of hardship causing the life event; such as -
You should also expect less than favorable interest rates in such a case.
Of course there are offsets to some of this risk based cost such as -
We understand life - so we are here to personally help and assist you on getting your credit back on track.
The Good News is that purchasing a house is still within your grasp.
The Federal Housing Administration has thrown a lifeline to borrowers who have a life experience such as bankruptcy, short sale or foreclosure. If the borrower can document that their bankruptcy was caused by a hardship causing a decrease in household income by 20% or more instigated by either unemployment or alternate economic event; the borrower may qualify for a mortgage backed by the Federal Housing Administration.
In a letter issued by the Administration on August 15,
“... recognizes the hardships faced by these borrowers and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage,” written by Carol Galante, commissioner of the Federal Housing Administration.
You CAN get a mortgage backed by FHA after just ONE Year after bankruptcy, short sale or foreclosure.
There are certain restrictions surrounding the reasons of hardship causing the life event; such as -
- Did you have good credit prior to the economic event?
- Was your hardship the result of a significant loss of household income beyond your control?
- Have you demonstrated full recovery from the event?
- Have you completed Housing Counseling?
You should also expect less than favorable interest rates in such a case.
Of course there are offsets to some of this risk based cost such as -
- contributing a larger down payment ... if savings are not an option, consider a gift or 401k
- waiting ... Immediately after your discharge date - your credit will improve. Creating and maintaining a consistent payment history. A responsible credit history can increase your score well into the 700s even before your bankruptcy falls off your credit report. However, major derogatory items such as defaulting on a loan and collections and/or charge offs after a bankruptcy is very very very bad.
We understand life - so we are here to personally help and assist you on getting your credit back on track.