Borrowers with bad credit can now buy sooner with FHA

You may still be able to purchase a new home

If you think that you are unable to purchase a new home because you had a short sale or foreclosure recently I may have good news for you!

The Federal Housing Authority has announced it is shortening the waiting periods for homeowners with negative marks on their credit, such as a short sale, deed-in-lieu, foreclosure or even bankruptcy to buy again with an FHA loan.

Instead of the mandatory 3 years before qualifying for a new loan, buyers may be able to purchase in just 12 months!

The new deal is part of the FHA's "Back to Work - Extenuating Circumstances Program".

The program has pretty strict requirements. Potential borrowers must:

1.) Prove that the foreclosure or short sale was caused by what the FHA calls an "economic event" -- a loss of income and/or employment, that was beyond the control of the borrower must have caused an income reduction of at least twenty percent six months or more.

2.) Borrowers must prove that they have "fully recovered" from the "economic event" that led to the event and must prove that their credit was good before the "economic event", meaning that their credit report was free from derogatory credit issues. Borrowers must also show that since the event the borrower has maintained  satisfactory credit over the past twelve months.

3.) Borrowers must also complete at least one hour of one-on-one counselling from a HUD-approved counsellor at least thirty days but no more than six months before applying for an FHA loan.

After meeting all the requirements, borrowers can qualify for an FHA loan, which allows them a mortgage with just 3.5% down.

Good news for homeowners facing foreclosure!!

Fannie Mae and Freddie Mac announced Monday that they will suspend all repossessions from Dec. 17  until Jan. 2, 2013.

"The holidays are a chance to be with loved ones, and we want to relieve some stress at this time of year," said Terry Edwards, Executive Vice President of Credit Portfolio Management, Fannie Mae.

Bank of America said it will also suspend foreclosure evictions both for loans it owns and for those it services for investors during the holiday. Still waiting for JPMorgan Chase, Wells Fargo and Citibank to announce their holiday intentions.

For more information on San Fernando Valley Foreclosures and Short Sales visit http://www.sanfernandovalleyshortsaleandforeclosure.com/

Prices In Los Angeles Are On The Rise!

Zillow.com predicts that homes prices in  Los Angeles and San Fernando Valley area are on the rise.
Zillow reported that home prices have risen almost 3% in the past year and expects prices to increase 3.5% over the next year.

Freddie Mac says that  interest rates moved  lower this week with lenders offering 30-year fixed-rate home loans 3.39%.

Me thinks NOW might be the time to buy!!!!!