Good news shared in Washington this week as the FHA announces a way they are going to make it easier for homeowners to qualify for a Florida Housing Authority backed mortgage.
To help us better understand the recent policy change, I sat down with our
Beachy Beach 30A office neighbor, Mike Tarleton, Senior Mortgage Officer with Bank of England. He was kind enough to sit down with me for a few minutes and answer some of my questions like:
Me:
Who does this change impact?
Mike:
The FHA Policy change will directly impact those homeowners who have previously experienced major financial hardships like a bankruptcy, foreclosure or short sale.
Me:
How will it help our customers?
Mike:
This change will help certain qualified buyers by decreasing the time they have to wait after a bankruptcy, foreclosure, or short sale for a FHA backed loan.
Previously the wait time had been longer for someone to be a viable loan candidate after financial distress.
The wait was 2 years after a bankruptcy and 3 years after a foreclosure or short sale.
Me:
How long is the new wait time?
Mike:
The wait period has now decreased to just one year for customers that meet the program's criteria.
Me:
What is the main criteria to qualify?
Mike:
The FHA wants to see evidence that prospective borrowers' household income dropped by 20 % or more for at least 6 months and that it was tied to unemployment or another type of hardship beyond their control. Borrowers must also participate in a minimum of 1 hour of approved housing counseling as well as show proof of 12 consecutive one time housing payments since the hardship.
Tarleton continued,
" This is a smart move by the FHA and a relief to a lot of our local Florida residents who have been working so hard to improve their credit to buy again."
Although the FHA has recently increased the fees attached to many of their loan products, they are still a great option for first time home buyers who might not be eligible for Fannie Mae or Freddie Mac backed loans.
If you are someone who has experienced financial hardship and think you may want to revisit the idea of buying a home, we encourage you to contact your Realtor and local lender to take advantage of these recent policy changes .
Mike Tarleton of Bank of England can be reached directly at 706-888-0980 or you may visit his website. or shoot him an email at: mtarleton@englending.com
To speak with one of our Realtors call one of our offices listed below.
Beachy Beach 30A Real Estate, specializing in the 30A villages and Walton County 850-231-3060
Beachy Beach Destin Real Estate, specializing in Destin and other areas in Okaloosa County 850-460-2734
Beachy Beach Real Estate of Panama City Beach, specializing in Bay County 850-233-4351