If you have recently lost your home in a foreclosure, short sale, or bankruptcy, and are looking for a second chance at purchasing Chicago real estate, you’ll be excited about this news. Last month the Federal Housing Administration (FHA), recently announced a rule change that will allow many potential borrowers to purchase a new home just one year after losing a previous residence. This new option is called the “Back to Work – Extenuating Circumstances” program.
Although several conditions need to be met, this could be an opportunity for many prospective home owners. To qualify, borrowers must prove that they lost their home because of a significant economic incident, such as losing a job. Circumstances must have changed significantly, resulting in the family income being fully recovered when applying for the new loan, too. Those wishing to purchase a home must also have an adequate credit score and participate in a one-on-one counseling session lasting one hour.
In addition to these conditions, borrowers need to meet all other FHA requirements as well as having a solid history of on-time rental payments, no more than one 30 day late payment to creditors, and no reported collection or court records. This program could be a great way to gain approval for your home. If you’d like to learn more about local homes for sale, give me a call. We’d love to help you find out more about this program and available Chicago real estate.