Tuesday, March 18, 2014 - Article by: Rachel - Mortgage 1 -
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 "
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:
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:
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
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