Posted on Sep 03, 2013

A Federal Housing Administration or FHA-insured mortgage loan is one that is given a partial government guarantee, and for many years FHA- backed loans have allowed lower income people to borrow money for a home that they otherwise couldn't afford. An FHA loan requires a minimum credit score of 500, at least a 3.5% down payment, and an MIP or mortgage insurance premium, but it often allows people to get loans that otherwise would not qualify for at all.

On August 15, 2013 the FHA relaxed its guidelines for borrowers who have suffered "periods of financial difficulty due to extenuating circumstances," such as unemployment or loss of income. And most importantly for my bankruptcy clients and former clients, the new FHA program WAIVES THE TWO YEAR WAITING PERIOD that was previously in place for people that have filed bankruptcy.

So if you otherwise qualify for the program, you can apply for and receive a mortgage in as little as ONE YEAR after filing for bankruptcy, or going through a foreclosure, a short sale, a deed-in-lieu of foreclosure, or certain other financial difficulties. .

If you are going to try to qualify for this program, in addition to locating an FHA-approved lender, we recommend that you do everything you can to raise your credit score, and to do that quickly you can sign up for the "7 Steps to a 720 Credit Score" educational program, by Phillip Tirone. 720 and above is the credit score to have, to get the very best interest rates. The program is a 14-lesson video course delivered to you via email.

The 7 Steps course is currently FREE for our clients and former clients. It is not credit repair; it educates you about credit scoring and shows you how to rebuild your credit score despite your bad credit of the past. This is a limited time offer.

If you are not a client and you are interested in the program, it costs as much as $1000 on the website. If you contact our office, we can offer you discounted pricing. This is a limited time offer.

Read More About FHA Says New Mortgage Possible One Year After Bankruptcy, Foreclosure or Short Sale if Caused by Unemployment or Loss of Income...

J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization