Finding the Best Home Mortgage Loans after a Short Sale

If you have previously gone through a short sale you are not closed off from obtaining a new home loan. You just have to make sure that you meet the necessary requirements that have been set up by the FHA. This is regardless of whether or not at the time of the short sale you were delinquent or current on you payments. In the event that you were not delinquent you will find that your application is favorably considered. In order to qualify for the best home mortgage loans under these circumstances you will need to have a 12 month record of mortgage payments made in time before the short sale. You will also need to show that the creditors you pay in installments were also settled within 12 months.

One of the things that are important to note when you are applying for this loan is that the FHA does not just take note of how well you paid off your mortgage, but on how well you did on your other debts as well. With the new back to work program, many who have gone through a short sale may get a respite even though they were not able to pay off their other debts sufficiently or in time. This program is a lot more lenient than the previous ones.

In order to qualify for this program after your short sale you will need to show proof that you had lost your job or your source of income such as a business that had suffered. The circumstances leading to this loss need to be out of your control. You will also need to take a counseling class on home ownership. If you skip this important requirement your loan will be denied. This housing counseling only takes an hour and is therefore not tedious. Every person asking for a loan under this program is handled as an individual to ensure that they get time to speak up and discuss the events that caused the short sale and how they have recovered from the said economic downturn.

If you follow the FHA’s guidelines, you can find some of the best home mortgage loans. You will, however, need to ensure that you have all of your ducks in a row. Paperwork such as your W2’s and tax returns need to be part of the application as proof of your economic event. If you had to shut down your business you will need proof of that as well. For those who were fired from a job, your letter of termination will be important. With this documentation get a qualified underwriter who will do a good job of filing the application so that you can get the money you need to purchase your dream home.