No more 3 year waiting period after short sale, bankruptcy, or foreclosure

If this applies to you please read and then call me at 702-340-6686. If you know someone this may apply to please pass along to them and ask them to give me a call.

Borrowers who lost their homes through foreclosure or short sale will no longer have to wait three years to get a mortgage to buy another home.

The Federal Housing Administration has changed the rules to help buyers whose credit was tainted due to the loss of a job or income reduction. They will now be able to get a mortgage to buy again after a one-year waiting period through the FHA’s new lending program, dubbed Back to Work. The FHA previously required these buyers to wait three years before applying for a mortgage.

Buyers who can document they lost their home to foreclosure or filed for bankruptcy because they were laid off or because their income was reduced by at least 20 percent will be eligible to apply for a loan after paying their bills on time for a year, according to the instructions the FHA sent lenders last week.

The change is effective immediately until September 2016.

Now for the fine print

Borrowers will be required to provide documentation showing the loss of income or employment, including termination notices, tax returns and W-2s.

The program is designed to help potential buyers who went through a period of financial distress but have been able to get back on their feet and can afford a home again. This is not going to work for strategic defaulters.

Speeding up the process

The program is especially helpful to borrowers who went through bankruptcy and foreclosure simultaneously. Often, the lender doesn’t take title of the property until years after the discharge of the bankruptcy, which has delayed the start of the waiting period for many potential buyers.

During the one-year waiting period after the foreclosure sale, bankruptcy discharge or short sale closing, the borrower should have:

  • No late housing payments (rent/mortgage).
  • No more than one 30-day late payment on all other accounts.
  • No accounts in collection.

Borrowers will also be required to go through housing counseling prior to being approved for the loan.

To find out if you qualify, please contact Spencer Valerio with iMortgage at 702-596-1993 or click HERE.

Be sure to tell him that you received this information and his contact info from the hardest working realtor in Las Vegas.

If you, or someone you know, is looking to purchase or sell a home in Las Vegas or Henderson, please contact me anytime for more information about our current market or the home buying process. I’m available, 7 days, 8 AM – 9 PM.


Click HERE for the latest, Up to date, neighborhood market analysis and statistics of various Las Vegas Communities and Schools.


Alan Taylor | REALTOR®
Prudential Americana Group, REALTORS ®
10777 W. Twain Ave. SUite 333
Las Vegas, NV 89135
Cell: 702-340-6686
Office: 702-340-6686
Fax: 702-507-0095

Alan Taylor, Prudential Americana Group REALTORS ®Agent to the biggest
celebrities in the world……..You!

Author: Alan Taylor

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