The plunge of the housing market roller coaster over the past few years is finally balancing out and coasting along an even track. Along with other homeowners across the nation, Tampa residents were subject to foreclosures. Short sales transferred their dream home to another. Better circumstances while home prices and interest are still low have those affected by these options wondering about the best way to buy a home.
Florida residents will find the Federal Housing Administration, commonly known as FHA, is a good place to start a new loan process. The mandatory down payment is lower and income qualification is more flexible. Banks are able to rely on FHA to insure loans, giving them more leeway with qualifications.
There are a few basic guidelines for those previously affected by short sale or foreclosure. A three year waiting period is observed until a person or family is eligible to apply for an FHA loan. Just like the lesson learned in English class, there are rules followed by exceptions to the rules.
Borrowers that pursued a principal residence short-sale agreement just to take advantage of the deteriorating market conditions are ineligible for a new FHA-insured mortgage.
If the mortgage was in default at the time of the pre-foreclosure or short sale, the 3-year eligibility waiting period starts from the date of the pre-foreclosure sale.
Exceptions are permissible if the borrower was in default due to circumstances beyond his or her control, such as:
- long-term job loss or layoff.
- death or long-term illness of primary wage earner (credit history prior to that situation must have been satisfactory)
FHA- insured mortgage eligibility states for each of the 12 months prior to a short sale, the payment must have been made on time, with other installment payments made during the month due.
Any borrower subjected to a deed-in-lieu of foreclosure or actual foreclosure during the last e years on any real property is ineligible for FHA mortgages.
Exceptions are allowed if the foreclosure was due to extenuating circumstances backed up with documentation, such as the death or serious illness of one of the wage earners. Good credit must have been reestablished since the foreclosure.
Two common events frequently resulting in foreclosure are divorce and the inability to sell property when relocating to another area. Neither one of those reasons is considered an extenuating circumstance.
If you have any questions or are considering the purchase of property in Tampa, Fl, please visit www.tampa2enjoy.com.