FHA-Back to Work Program-Helping Previous Home Owners Get Back Into a Home of Their Own
If you or someone you know were one of the thousands of home owners who were forced to foreclose, short sale, or even declare bankruptcy due to extenuating circumstances caused by the recent recession, you may not have to wait any longer to buy a home of your own!
The new “Back to Work” program is reopening the housing market to many of those who would otherwise have to wait several more years before qualifying for a mortgage again. With this unprecedented new program, FHA is recognizing that for many whose credit was negatively affected by recession-related hardships, their credit history may not fully reflect their true current ability or propensity to repay a mortgage.
As a result, if you have a foreclosure, short sale, loan modification, bankruptcy or other derogatory credit event, you may be eligible to qualify for a home loan again. To qualify for the “Back to Work” program, potential applicants must have experienced an economic event and be able to document that:
- Certain credit impairments were a result of a loss of employment or significant loss of household income beyond the borrower’s control;
- The applicant has demonstrated a full recovery from the event; and (no late debt payments for 12 months)
- The applicant has completed a housing counseling class. (available in person, online, or via phone and usually lasts about 1 hour)
- The “Back to Work” program does not affect your loan rate or available loan size any differently than you would get with traditional FHA loan options. With rates and home prices still fairly low, it is a great time to get back into the housing market.