Recent FHA Guidelines Change The Rules On Wait Times For Home Purchases After Foreclosure
There is a lot of good news in the Santa Clarita housing market. Home prices are up, mortgage rates are down, and many formerly “upside down” borrowers are once again seeing positive equity in their properties. We’re seeing a lot of positive signs elsewhere as well. Short Sales are down over 80%, and foreclosures have dropped over 50% since this time last year.
While it appears we’re well on the road to recovery real estate-wise, we know that many people have gone through a lot. We have helped many people avoid foreclosure through a short sale, and yet there were so many homeowners who, through no fault of their own, lost their home to the bank. The Great Recession affected many who struggled financially due to circumstances beyond their control. In many cases, those circumstances were temporary, and many are back on the path to a more financial future.
Are you ready to re-enter the housing market?
If you were one of the many who suffered setbacks as a result of the Great Recession and had short sold lost your home to foreclosure as a result, we have good news! Recent guideline changes from the Federal Housing Administration allows former homeowners the ability to wait only one year to purchase a home after going through a foreclosure.
The “Back to Work” program waives the original three year wait time for potential home buyers who can prove their economic hardship was due to extenuating circumstances and can show that they have recovered from their hardship to be able to afford a new home. Buyers must be willing to obtain financing through an FHA approved lender, and also must prove at least a 20% loss of income consecutively for six months prior to the event (IE: Short sale or foreclosure).
Aside from demonstrating that you’ve fully recovered from your economic hardship, the Back To Work program also requires prospective buyers to complete housing counseling from an FHA approved source.
Let Team Avalos guide you back into home ownership. We are experienced and ready to help you realize all of your real estate goals. Contact us today for a private needs analysis.
Team Avalos Real Estate
Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia, CA 91355
Office: (661) 290-3743
Carlos direct: (818) 399-4093
Rose direct: (818) 590-2077