By Jim Baldasare and Ginny Phillips of Atlantic Bay Mortgage
On August 15, 2013 FHA came out with some additional clarification and guidelines around buyers having loss of income due to an Economic Event. 
An Economic 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 20% or more for a period of at least 6 months.
In the past, these borrowers would not be eligible for financing through FHA due to their waiting periods for bankruptcies, foreclosures, deeds-in-lieu, short sales, as well as delinquent and derogatory credit such as judgments and collections.
Now, if the borrower can document that the credit issues were a result of the Economic Event, they meet all other FHA requirements, complete a HUD-approved Housing Counseling class and have a minimum of 12 months since any incidents, they may be considered for FHA financing.
This is great news for many borrowers looking to purchase a new home! If you have had financial issues in the past few years, you could be eligible again for financing! Contact Jim at 757-870-8387 or Ginny at 757-572-9635 today for more information.
Are you looking to start the home buying process? Email us at concierge@lizmoore.com, we'd love to help! Or, click below to download our free Home Buyer's Handbook.
Are you interested in hot real estate topics, tips and trends?
Click below to subscribe to our blog!
