What is Back to Work?
FHA is continuing its commitment to fully evaluate borrowers who have experienced periods of financial difficulty due to extenuating circumstances.
Many borrowers experienced periods of recession related financial difficulty and/or credit impairment resulting from unemployment or a severe reduction in income. FHA recognizes the hardships faced by these borrowers, and that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.
For Purchase transactions with case numbers assigned on or after August 15, 2013
- Economic Event: an occurrence beyond the borrowers control that resulted in a Loss of Employment, Loss of Income or a combination of both which resulted in a loss of Household Income of 20% or more for a period of six or more months.
- Onset of Economic Event: the month of the start of or loss of income.
- Recovery from an Economic Event: the re-establishment of acceptable or satisfactory credit. Satisfactory Credit equates to no derogatory credit for any mortgaged or leased property in the 12 months preceding the mortgage application. This also includes any installment or revolving debt for the same period.
- Borrower: “Borrower” includes all parties including primary and/or co-borrower as listed on the loan application.
- Borrower Household Income: the income of all parties on the application or Household Members as listed from the previous Economic Event and derogatory credit.
- Housing Counseling: Counseling from a HUD-approved housing counseling agency related to home ownership and meets acceptable requirements.
If you feel that you might qualify or have any questions regarding this new FHA Back to Work mortgage program, then please give us a call.
- New FHA Program Seeks to Return Foreclosed Borrowers to Homeownership (louisvillemortgageguide.com)
- FHA Mortgage Guidelines for a Louisville Kentucky FHA Mortgage (trulia.com)
- FHA eases rules for some borrowers after bankruptcy, foreclosure (jeffmertlrealestate.wordpress.com)
- Home buyers may qualify for FHA loan despite short-sale or foreclosure (realty008.wordpress.com)
- FHA Trims Waiting Period for Borrowers Who Experienced Foreclosure (jeffmertlrealestate.wordpress.com)
- FHA expands mortgage backing to the once bankrupt (trulia.com)
- FHA Home Mortgage Purchase or Refinance Loan – Why You Might Consider Getting an FHA Loan (louisvillemortgageguide.com)
- Brooklynites- Had A Bankruptcy or Short Sale- FHA Reduces Wait Time to one year to purchase a home again (cadogan1.wordpress.com)
- FHA Foreclosure Waiting Period now getting shorter. (ransomrealty.wordpress.com)
- 4 Keys to VA Loan Approval | Military.com (kentuckyfirsttimehomebuyer.com)