Borrowers that may be otherwise ineligible for an FHA-insured mortgage due to FHA's waiting period for major derogator credit events, may now be eligible for an FHA-insured mortgage if the borrower can prove clean " Satisfactory Credit "

1. The new guidelines allow borrowers affected by our RECENT ECONOMIC DOWNTURN ( those who have had financial setbacks ) to qualify for a new FHA mortgage sooner than before.
2. Now they may qualify one year after their economic challenge, as long as they've re-established clean credit.
3. Prior to the new guidelines, borrowers often waited anywhere form two to seven years before they could qualify.
4. Borrowers included in the new guidelines are those who, as a result of the recent recession, experienced unemployment or other severe reductions in the income, and were unable to make their monthly mortgage payments. These homeowners ultimately lost their homes due to a:

• Foreclosure
• Short Sale
• Deed-in-lieu
• Bankruptcy
• Modification

Economic Event

An "Economic Event " is an occurrence beyond the borrower's control that results in loss of employment, loss of income, or a combination of both which caused a reduction in the borrowers household income of 20% or more for a period of at least six months.

The recovery of an economic event is the reestablishment of " satisfactory credit " for a minimum of 12 months after the economic event. Some borrowers were forced to file for bankruptcy to discharge or restructure their debts.

Because of the recent recession - related periods of financial difficulty, some borrowers credit ha been negatively affected. FHA recognizes that hardship faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.

Satisfactory Credit

FHA defines satisfactory credit as:

• The borrower's credit history is clear of late housing or installment debt payment and major derogatory credit issues on revolving accounts.
• Any open mortgage is current and shows 12 months satisfactory payment history. Mortgage may have been brought current through a loan modification, which may be temporary of permanent so long as all payments have been documented as being received in accordance with the modification agreement(s).; and
• The borrower meets all other HUD requirements including FHA income requirements: And

Ross Mortgage must review and analyze all documentation to determine that the loss of employment and/or loss of income resulted in minimum of 20 percent reduction in income for a minimum of six months.

In addiction, we must verify and document that:

• A minimum of 12 months has lapsed since the date of the foreclosure, deed-in-lieu, short sale, modification or bankruptcy.
• Foreclosure, deed-in-lieu, modification or bankruptcy was in fact a result of the economic event.
• A minimum of a 640 credit score.
• A minimum of 12 months of satisfactory credit prior to and following the "Economic Event " including:
• No history of delinquency on rental housing payments
• No more than 30 days delinquency on any payments due to other creditors
• No collection accounts/court records reported (other than medical and/or identity theft )

• Borrower must have completed satisfactory Housing Counseling a minimum of 30 days but no more than six months prior to applying for their new mortgage loan.

FHA says, " Housing counseling enable borrowers to better understand their loan options and obligations and assists borrowers in the creation and assessment of their household budget and, accessing reliable information and resources, avoiding scams, and being better prepared for the future financial shocks, among other benefits to the borrower."

Ross Mortgage is providing regularly scheduled housing counseling classes/workshops by working with HUD-Approved housing counseling agencies. The many twists and turns in this program require interpretation and help form our qualified staff.

The housing education must address the cause of the economic event and reduce the likelihood of reoccurrence. Ross Mortgage will facilitate the counseling of pre-screen applicants.

If you or anyone you know could benefit form this program please give me a call :

Ross Mortgage Corporation

Rachel Von Ins NMLS:196229

office # 616-994-8785

cell #616-886-1507