The Back to Work Program Helps Home Buyers with Financial Problems
Have you been having trouble buying a new home due to a financial hardship? If so, the Federal Housing Administration also known as “FHA” may have some good news for you. The Back to Work program, effective as of the fifteenth of August 2013, is providing struggling home buyers with the aid they need to get back in the housing market and secure the home of their dreams.
Under these new guidelines, the usual waiting periods that follow a derogatory credit event has been reduced. Recent events have inspired the FHA to acknowledge that a bad credit history is occasionally out of an individual’s reasonable control, and doesn’t necessarily reflect your ability to make mortgage payments. Therefore, if you’ve experienced any of the following over the past few years, you may be eligible to get a new FHA-insured mortgage to become a homeowner again:
- Pre-foreclosure sales
- Short sales
- Deed-in-lieu
- Foreclosure – was 3 years – now only 1 from release of lien on title.
- Chapter 7 bankruptcy – was 2 years – now only 1 year from discharge
- Chapter 13 bankruptcy
- Loan modification
- Forbearance agreements
These timelines have been shortened for people who have suffered such hardships should be prepared to demonstrate that their ability to make payments was caused by a loss of employment or other such significant loss of income that was beyond their control by 20% or greater. The potential borrower must then demonstrate a recovery from the hardship, and complete housing counseling with an HUD-approved agency. If the FHA is satisfied, you will once again be able to buy a home with the current market interest rates and home prices.
For more information on the Back to Work program, you can contact Lynnwood mortgage lender / broker David Haley.
