New Federal Legislation Makes it Easier to Get a Mortgage After Bankruptcy

The Federal Housing Administration (FHA)’s new “Back to Work” lending plan shortens the waiting time required to secure a mortgage after bankruptcy or foreclosure to 12 months. FHA mortgages have always been a great option for first-time or lower-income borrowers because they require only a 3.5 percent down payment. In the past, borrowers had to wait three years after a foreclosure or two years after a bankruptcy to qualify. Now, loss of income is accepted as a qualifying event to shorten the waiting period.

To qualify for “Back to Work” mortgages, applicants must demonstrate:

All claims must be supported by termination notices, tax returns and W-2s.  People whose Chapter 13 bankruptcy has not yet been discharged must furnish written permission from their Bankruptcy Court to apply for the loan.  

The Atlanta, GA bankruptcy attorneys at DebtStoppers are knowledgeable about FHA guaranteed loans and can help you determine if you qualify under the new regulations.  To own your own home again and begin building equity, call their office today at 404-796-7161 to schedule a free consultation. 

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