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You may qualify to purchase a new home or refinance your existing home with a new FHA loan even if you had a bankruptcy, foreclosure or short sale just one year ago!  Call 630-854-3459 to discuss this new program or apply online! 


FHA is continuing its commitment to fully evaluate borrowers who have experienced periods of financial difficulty due to extenuating circumstances.

As a result of the recent recession many borrowers who experienced unemployment or other severe reductions in income, were unable to make their monthly mortgage payments, and ultimately lost their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure. Some borrowers were forced to file for bankruptcy to discharge or restructure their debts. Because of these recent recession-related periods of financial difficulty, borrowers’ credit has been negatively affected. FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.

To that end, FHA is allowing for the consideration of borrowers who have experienced an
Economic Event and can document that:

 certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower’s control;

 the borrower has demonstrated full recovery from the event; and,

 the borrower has completed housing counseling.

Housing counseling is an important resource for both first-time home buyers and repeat home owners. Housing counseling enables borrowers to better understand their loan options and obligations, and assists borrowers in the creation and assessment of their household budget, accessing reliable information and resources, avoiding scams, and being better prepared for future financial shocks, among other benefits to the borrower.

Borrowers that may be otherwise ineligible for an FHA-insured mortgage due to FHA’s waiting period for bankruptcies, foreclosures, deeds-in-lieu, and short sales, as well as delinquencies and/or indications of derogatory credit, including collections and judgments, may be eligible for an FHA-insured mortgage if the borrower

 can document that the delinquencies and/or indications of derogatory credit are the result of an Economic Event,

 has completed satisfactory Housing Counseling,  and

 meets all other HUD requirements.


An Economic Event is any occurrence beyond the borrower’s control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower’s Household Income of twenty (20) percent or more for a period of at least six (6) months.

The Onset of an Economic Event is the month of Loss of Employment/Income.

Recovery from an Economic Event is the re-establishment of Satisfactory Credit  for a minimum of twelve (12) months.

The term borrower includes borrowers and co-borrower.

Borrower Household Income means the gross income of the borrower and all Household Members, as defined below, for purposes of assessing loss of income. The gross income of each Household Member must be computed in accordance with FHA income requirements.

Note: Household Member, for the purpose of this program, means an individual residing at the borrower’s primary residence at the time of the Economic Event and who was a co-borrower on the borrower’s previous mortgage.

You may qualify for a new FHA loan even if your bankruptcy, foreclosure or short sale was a recent as 12 months ago!  For more information call 630-854-3459 or email Patty Harrison at for more information.

Contact Info

Patty Harrison

ph. 630-854-3459
fx. 630-904-1010
Cell: 630-854-3459
Smart Mortgage - 4003 Plainfield/Naperville Rd. #201 , Naperville, IL 60564
NMLS #230234/Company #222269 / Illinois Residential License #4870