For those looking for a short-term injection of cash, for those 55 and over looking for extra income and who are planning on living in their homes for many years and are less concerned about leaving a legacy, it could be an avenue worth exploring. Other options include a line of credit or downsizing.
2017 FHA Guidelines. 1  Bankruptcy â You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years with a Chapter 7 Bankruptcy. 2  Foreclosure â You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date. Short Sale / Deed in Lieu â You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date. FHA treats short sale, deed in lieu and foreclosure as the same waiting periods.
Tenant Occupancy Issues. HUD requires lenders of FHA-mortgaged homes to send out occupancy letters at least 60 days, but no later than 90 days, prior to foreclosure. If occupancy conveyance is granted, tenants are placed on month-to-month leases only. Also, PTFA carves out an exception to a tenant's post-foreclosure occupancy rights by allowing new owners to move into their homes 90 days after notifying the tenants of their intention to do so.