What's Hot: The 4 Projects in the Works Near DC's Starburst Intersection | A 153-Room Aloft Hotel Pitched For Mt. Vernon Triangle
For The Foreclosed, A Shorter Waiting Period
The waiting period for homeowners who have been foreclosed on or gone through a financial hardship to re-apply for an FHA loan just got a little shorter.
A new rule change from the Federal Housing Administration via a program called Back to Work – Extenuating Circumstance has reduced the period that these borrowers are required to wait to apply for a new home loan from three years to 12 months. (The waiting period for a conventional loan is 7 years.) The borrower must prove that the reason for the foreclosure or financial hardship was due to job loss or significant drop in income. In addition to showing current income that will support the new mortgage, the borrower must provide evidence of an excellent credit record since the foreclosure and is required to undergo “housing counseling” with a HUD-approved counselor.
While this could be good news for some, it could be hard to find a lender willing to issue a loan. Under the program, the FHA loan must be manually underwritten which means that the lender will have to buy it back in the event that the borrower defaults. In virtually all other cases, FHA loans are guaranteed by the federal government.
The program is the latest effort by the Obama administration to aid those who lost their homes to foreclosure and other events in the most recent housing crisis. For additional details, click here.
This article originally published at https://dc.urbanturf.com/articles/blog/for_the_foreclosed_a_shorter_waiting_period/7505.
Most Popular... This Week • Last 30 Days • Ever
In this article, UrbanTurf looks at the estimated annual maintenance costs associated... read »
Today, UrbanTurf is examining one of our favorite metrics regarding competition in th... read »
Another concept has been unveiled for one of DC's most contentious development sites,... read »
The residential development in the works along Florida Avenue NE is looking to increa... read »
Renter demand has continued to push Class A apartment rents in the DC region up this ... read »
- What Are the Annual Maintenance Costs When You Own a Home?
- The 6 Places In The DC Area Where You Aren't The Only One Bidding On a Home
- A First Look At The New Plans For Adams Morgan's SunTrust Plaza
- 46 to 48: The Biggest Project In Trinidad Looks To Get Bigger
- How Much Did DC-Area Rents Rise At The Beginning of 2024?
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro