The Federal Home Association (FHA) has just issued new guidelines establishing eligibility for home buyers who have suffered a bankruptcy or foreclosure to qualify for a new mortgage loan in as little as one year.
In response to new FHA guidelines announced August 16th, American Pacific Mortgage will be launching anew FHA product for borrowers one year out of bankruptcy or foreclosure.
Here's a sneak peek of the product requirements (finalized details announced next week)
Minimum FICO score 640
Maximum debt ratios 31/43
Documentation of lost income/employment
There will also be very clear guidelines from FHA regarding the borrower’s economic hardship relating to the recent recession (i.e. job loss, reduction in hours/OT, etc). These loans will be approved on a case-by-case basis.