The Great Recession that started in late 2007 forced many responsible Colorado homeowners into mortgage loan default and/or bankruptcy. Because of this, the Federal Housing Authority (FHA) realized that credit histories don’t always reflect a person’s true ability or willingness to pay on a mortgage, and on August 15, 2013, announced its shortening of the mandatory waiting periods for homeowners with a black mark on their credit.
This means that if you have experienced a foreclosure, short sale, bankruptcy, etc., you now only have to wait 1 year instead of 3 years before you can apply for an FHA mortgage.
Here is a link to the actual FHA Mortgagee Letter (the document number is 13-26).
