The Department of Housing and Urban Development (HUD) released new guidelines to lenders regarding borrower eligibility for a new Federal Housing Administration (FHA) mortgage after pursuing a short sale.
According to the new FHA guidelines, Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to take advantage of declining market conditions, and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
But Borrowers are considered eligible for a new FHA-insured mortgage if they were current on their mortgage and other installment debts at the time of the short sale of their previously owned property, and the proceeds from the short sale serve as payment in full.
You can check official HUD letter for more information: New FHA Guidelines
What I understand that according to the new guidelines, homeowners who did short sale and didn’t miss any payments for the last 12 months, then they can purchase another home immediately after the sale of their current home, so they don’t have to move to rental apartment, rather they can look for another home when their short sale is approved.
And those home owners who missed their payments, they have to wait for another 3 years from the date of home sale to qualify for another home loan but lenders may make exceptions to this rule under certain circumstances.
In summary, the focus seems on rewarding those who made their payments on time and did a short sale. So, if you haven’t missed any payments and thinking of doing short sale, then contact an experienced short sale agent to help you to sell your house and buy another home.
If you are in bay area and would like to know more about this guidelines and qualification or help you to do short sale and buy another home immediately, please feel free to call me at 510-366-9405.
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