NLIC.org

Allen Said:

What lenders do an FHA mortgage with less than 3 years foreclosure seasoning given extenuating circumstances?

We Answered:

As I understand your question is you had a foreclosure about 3 years ago and now want to purchase a new home underwritten by FHA mortgage. All the mortgage brokers so far are telling you this is not done, yet the HUD handbook say it can be done.

You need to find a mortgage broker that do FHA loans that understand the nuances of doing a FHA backed mortgage loan with a previous foreclosure or call a local HUD office to get an interpretation of the HUD pamphlet or a list of local mortgage loan officers that understand the meaning of the pamphlet.

Normally, after 3 years and with a strong letter of explanation as to why you had a foreclosure, you could apply for a mortgage loan.

Of course with the pamphlet indicating you might apply, you- must still qualify with the proper credit scores, rebuilt credit and a minimum of three credit trade lines on your credit report. You should make sure you meet the minimum qualifications prior to applying for a mortgage loan.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"