PLANO (HousingWire) – The Federal Housing Administration (FHA) is offering mortgage insurance to those who fell on hard times during the recession.
Borrowers who filed for bankruptcy or lost their homes through a foreclosure or short-sale proceeding and can prove they are no longer financially compromised are eligible if they meet all other FHA requirements.
“Besides the burden of proof on the borrower to demonstrate a recovery from the ‘economic event,’ the potential homeowner must also complete housing counseling,” reports HousingWire. “This event would need to result in a minimum loss of 20 percent of the household income.”
Lenders also must verify that at least a year has passed since foreclosure and that the economic event was responsible.