To begin with, let’s look at the basis of this article, the 2016 FHA Mortgage After Loan Modification Guidelines and the main objective here is the loan modification. Now if some of you are wondering what a loan modification is, it is rather simple. These were modifications to existing home loans where the borrower was in trouble of losing the house to foreclosure, were behind on their payments, and had a major change to the financial standing. After this, the lender has allowed them to refinance their existing loan, pay a lower interest rate on the loan, extend the term of the loan, skip payments and add them to the total loan amount, or take past-due amounts and roll them into the total amount of the loan.
The 2016 FHA Mortgage After Loan Modification Guidelines applies to both FHA home purchase loans as well as FHA refinance loans. The first item that needs to be understood is that there is a mandatory one year waiting period after the completion of a loan modification before and FHA mortgage loan can be issued. There are also credit requirements when we are talking about 2016 FHA Mortgage After Loan Modification Guidelines. Let’s take a step back for a moment and realize that there are many reasons why borrowers would have gotten a loan modification in the first place. These modifications could have been needed due to some extenuating circumstances that took place in the borrower’s history. The borrower could have gone through Divorce, loss of income, job loss, or any other major reduction in income. Given these extenuating circumstances, the borrower’s credit could have been seriously damaged or in the process of being damaged before they were able to get a loan modification to help them out. If the borrower went through late-payments, missed payments, or even close to foreclosure, there is no doubt that their credit was negatively affected as well. They might not have been affected as much as a bankruptcy or foreclosure, but the negative affect will still be there.
After the loan modification takes place the 2016 FHA Mortgage After Loan Modification Guidelines want you to have made 12 monthly on time payments on your mortgage in the 12 months after your loan modification. No late payments will be allowed or tolerated given your loan modification allowed you to be able to afford your mortgage. If there is a late-payment in the 12 months after your modification, you will not qualify for 2016 FHA Mortgage After Loan Modification Guidelines.
The 2016 FHA Mortgage After Loan Modification Guidelines have been put in place for FHA to issue loans to deserving people after their loan modification. What you will probably encounter is a lot of lenders have their own lender overlays that puts additional requirements needed to get approved. However, if you meet these minimum qualifications, have waiting one year since your modification, and made all your payments on time, you should be good to go. Here at Loan Consultants, we lend to the FHA minimum requirements without any lender overlays so we can get you approved where other lenders fall short. If you think you satisfy the 2016 FHA Mortgage After Loan Modification Guidelines give me a call at 888-900-1020, email me at email@example.com, or visit my website:www.loanconsultants.org.