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.
FHA insures loans for one- to four-unit dwellings which you must occupy as a primary residence. Because the FHA makes owner occupancy a condition, you must take occupancy soon after closing on a purchase, with only a few exceptions. Time Frame For Move-In The FHA defines your principal residence as the property that you occupy for a majority of the calendar year. You must establish occupancy in a home with an FHA loan within 60 days of signing the security instrument -- a mortgage or deed of trust. The type of security instrument you sign varies by state and by lender.