Washington FHA Loan FAQs

Lately there has been more FHA Loan activity and with that came several recurring questions. Here is some very useful information to be aware of concerning short sales and FHA loan eligibility regarding Washington‘s FHA loans.  For more details, please give our lenders a call!



Question: I’m considering selling my home on a short sale basis. How long do I have to wait to be eligible for an FHA loan?

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Answer: In most cases, please refer to the attached flyer which outlines the time frames by loan program including FHA. However, if the borrower is current on their mortgage and other installment debt at the time of the short sale, he/she may be eligible for a new FHA insured mortgage. See below details…

**Borrower Current at time of Short Sale**

A borrower is considered eligible for a new FHA insured mortgage if, from the date of loan application for the new mortgage, all

· mortgage payments due on the prior mortgage were made with the month due for the 12 month period preceding the short sale, and

· installment debt payments for the same period were also made within the month due.


A borrower is not eligible for a new FHA insured mortgage if he/she pursued a short sale agreement on his or her principle residence simply to take advantage of declining market conditions, and purchase a similar or superior property within a reasonable commuting distance at a reduced price as compared to current market value.

An example of an eligible scenario is a borrower transferring to another job location with the same employer.


If you’d like more information or have further questions regarding FHA Loans feel free to contact Sheryl Trewhitt (MLO-251083)  at 425-317-8000 OR Karen Stubrud (MLO-71806) at 360-436-4316.

Feel free to leave any additional comments or questions regarding the blog too! :)

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