HousingWire reports that the Federal Housing Administration (FHA) is offering mortgage insurance to those who fell on hard times during the recession.
Borrowers who filed for bankruptcy or lost their homes through a foreclosure or short-sale proceeding and can prove they are no longer financially compromised are eligible if they meet all other FHA requirements.
"Besides the burden of proof on the borrower to demonstrate a recovery from the 'economic event,' the potential homeowner must also complete housing counseling," reports HousingWire. "This event would need to result in a minimum loss of 20 percent of the household income." Lenders also must verify that at least a year has passed since foreclosure and that the economic event was responsible