FHA vs Conventional Loan

FHA vs Conventional Loan

FHA vs Conventional Loan  – 2nd Chance Loan with FHA


fha vs conventional loanFHA vs Conventional Loan options. GREAT NEWS! FHA announces new program.  FHA wants to help individuals hurt by the recent recession.  Specifically, individuals with a financial hardship caused by unemployment or a severe reduction in income during the recent economic recession.

Conventional loans do not offer this option.

NOTE: While the Maricopa County (Phoenix Area) maximum loan amount of $271,050 is mentioned in the video, it is the maximum is the same for Pinal and Pima Counties.

FHA vs Conventional loans may be better for some as a result of these action by the FHA. It is called the FHA “Back-to-Work: Extenuating Circumstances” Program.

If you or someone you know has experienced extenuating circumstances and an event such as:

Foreclosure or Pre-Foreclosure

Short Sale

Chapter 7 or 13 Bankruptcy

Deed-in-Lieu

Loan Modification

Forbearance Agreement

If you are considering a FHA vs Conventional Loans keep this program in mind if you had a financial hardship.

As a result of this program, you might be entitled to sign up for an FHA-insured mortgage after just 1 year. Previously the waiting period had been 2-years for bankruptcy or 3-years  for a short sale or foreclosure!

This FHA vs Conventional loan option could put many eligible home buyers back in the market.

The key test is a loss of employment or reduction in income (20% or more) for a period of at least 6 months. If your home was lost due to that situation, you may qualify.

In addition, the following will be required:

Documentation that the derogatory credit was a result of loss of a job or a significant loss of household earnings beyond the buyers control

Demonstration of full recovery from the situation with one year satisfactory credit

Buyer must complete housing counseling (must be completed 30 days before going under contract on a new home)

At least 12 months needs to have passed since the derogatory credit event

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FHA vs Conventional Loan was last modified: June 15th, 2015 by ben4wp

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FHA vs Conventional Loan was last modified: June 15th, 2015 by ben4wp

Go to the FHA Website for additional background on FHA Loans.

FHA vs Conventional Loan was last modified: June 15th, 2015 by ben4wp

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