Throughout the country, aftereffects of the economic downturn that occurred a few years ago affected many residents of Bethesda, Maryland. Even after the economy recovered, many people found it difficult to cope with the many financial challenges they were facing and, as a result, lost their homes to foreclosures and short sales. According to reports, more than 7.2 million homes were lost during this time period and the owners had no choice but to become renters.
In recent times, thanks to some commendable measures by the Federal Housing Administration, many such home owners can now look forward to buying a new home, even after a foreclosure or a short sale. The program was launched in the summer of 2013 and insures the loan that a home buyer assumes for a residential property. There are, however, some eligibility criteria required for buyers to be able to reap benefits from the program.
Applicants need to show that they lost at least 20 percent of their income over a period of six months and establish that they lost their home due to this loss of income. They further need to prove that they have financially recovered since that time and have maintained a clean credit record for at least 12 months. There is extensive documentation involved in the process and all of the borrower’s finances are considered at the time of processing the loan.
Once the borrowers have all necessary paperwork in place, they become eligible for regular FHA loans, which provide for low interest rates. As an added incentive, borrowers only need to make a down payment of a mere 3.5 percent of the entire property value.
Although the FHA has not provided details on how many people have signed up for the program, statistics suggest that only a tiny percent of people who lost their homes have utilized the program thus far. Since this program may be a golden opportunity for many people who lost their homes, it may be a wise choice for Montgomery County residents to seek the guidance of a Bethesda Maryland Foreclosure attorney in preparing the requisite paperwork, or contacting the FHA or a mortgage lender to finance their new homes.
Source: CNBC, “‘Boomerang’ homebuyers getting government boost,” Diana Olick, June 13, 2014