What is considered extenuating circumstances for FHA?
FHA describes extenuating circumstances as circumstances that were beyond the control of the borrower, such as a serious illness or death of a wage earner, and the borrower has re-established good credit since the major credit event.
What is considered an extenuating circumstance?
A situation or condition that provides an excuse for an action, as in Although Nancy missed three crucial rehearsals, there were extenuating circumstances, so she was not dismissed.
Is divorce an extenuating circumstance for conventional loan?
While divorce is not considered an extenuating circumstance because FHA loans can be manually underwritten, an exception may be granted where a borrower’s loan was current at the time of his/her divorce, the ex-spouse received the property, and the loan was later foreclosed.
What is a FHA waiting period?
210-day “waiting period” after buying or refinancing The FHA requires that borrowers make six mortgage payments on their current FHA-insured loan, and that 210 days pass from the most recent closing date, in order to be eligible for a Streamline Refinance.
Is divorce an extenuating circumstance for FHA loans?
FHA describes extenuating circumstances as circumstances that were beyond the control of the borrower, such as a serious illness or death of a wage earner, and the borrower has re-established good credit since the major credit event. For FHA, Divorce is not considered an extenuating circumstance.
What are the extenuating circumstances guidelines for mortgage companies?
Mortgage Agency Guidelines description of extenuating circumstances guidelines is very specific. Extenuating circumstances are circumstances that are beyond a person’s control. Divorce, change of careers, relocation due to climate are not considered extenuating circumstances.
How does Fannie Mae describe “extenuating circumstances?
Fannie Mae describes “extenuating circumstances” as follows: Extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations. If a borrower claims…
What is not considered an extenuating circumstance?
Divorce, change of careers, relocation due to climate are not considered extenuating circumstances. Extenuating Circumstances Guidelines are specific to all loan programs such as FHA, VA, USDA, Fannie Mae, Freddie Mac.