FHA Credit Change Help Buyers | new guidelines announced 10-13 help more homeowners obtain homes again.

1. Irfan Nazir
Senior Vice President
Pac West Home Loans
Phone: 909-786-6763
Fax 866-809-6206
License:289598
www.pwhomeloans.com
FHA Credit Policy Change Makes it Easier to Qualify
"Economic Events" Recognized as Isolated
Effective immediately, policy changes in the way the Federal Housing Administration (FHA) views certain derogatory credit will
make it easier for some borrowers to qualify for purchasing a home. Allowances will be made for certain "Economic Events"
resulting in poor credit ratings, which previously would cause borrowers to be ineligible.
What do the new rules say? Potential borrowers who experienced a decrease of income by 20 percent or more for at least six
months, and that resulted in serious derogatory credit such as a short sale, foreclosure, or bankruptcy, may still be eligible as
long as:
1. The loss of employment or income was due to an extenuating circumstance beyond his or her control and can be
documented;
2. A satisfactory credit history has been restored for a period of 12 months; and
3. Housing counseling has been completed.
Other changes effective October 15, 2013 include amendments to underwriting guidelines in the area of outstanding, prior
judgments and collections, including the exclusion of unresolved medical collections from the underwriting decision.
If you or anyone you know has been previously denied for a home loan based on an isolated credit incident, I may
be able to help! And I'm always happy to answer any questions you may have.
Sincerely,
Irfan Nazir
Pac West Home Loans
www.pwhomeloans.com
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