Question: How long do I have to wait after a short sale or Bankruptcy to be able to buy a home a again
Answer: one Year
Brooklynites- Had A Bankruptcy , foreclosure, Short Sale- FHA Reduces Wait Time to one year to purchase a home again
In an effort to further help the housing market and return residents to home ownership The FHA has come out with Mortgagee Letter 2013-26 allowing individuals who were affected by the recent economic downturn to purchase a home again using the FHA loan. Persons who had a short sale (pre-foreclosure sale), deed-in-lieu, or foreclosure and anyone with a negative impact on their credit FHA is waiving their current waiting periods of three years for foreclosures and two years for bankruptcy as long as the individual meet new requirements.
According to FHA, an Economic hardship Event is any occurrence beyond the borrower’s control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower’s Household Income of twenty (20) percent or more for a period of at least six (6) months.
If the person can prove a 20% decrease in income from year over year and as a result were forced into either a foreclosure type transaction and or bankruptcy, and can prove that you have re-established their credit over the last 12 months,with no late payments, collections, or judgments, and meet all other minimum HUD requirements, that person may be eligible to purchase a home again.
The new Mortgagee Letter 2013-26 allows the person to buy a home again or even refinance a home after only 1 year opposed to either 2-3 years depending on their situation.
* If you are ready to buy a Brooklyn home again, speak to your banker or mortgage lender, get approved and call me to begin your search for a new Brooklyn home for sale for you and your family.
Fillmore Real Estate
Licensed Real Estate Associate Broker
2926 Ave J
Brooklyn NY 11210