Bankruptcy and Foreclosure Seasoning for FHA buyers reduced to 1 year

    borrowers must prove that income was reduced by 20% or more for a period of 6 months or more
    borrower must attend housing counseling
    borrower must demontstrate full recovery from the economic event

This change is effective for all FHA case numbers pulled on or after 8/15/13

HUD Mortgagee Letter 2013-26 Back to Work – Extenuating Circumstances

http://www.mpamag.com/mortgage/fha-drastically-reduces-waiting-times-for-foreclosures-bankruptcies-15632.aspx

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