FHA Back To Work Program

FHA Back To Work Program 2013

The FHA Back to Work – Extenuating Circumstances Program is in effect as of August 15, 2013.

What is the FHA Back To Work – Extenuating Circumstances Program?

It is a program for potential mortgage applicants who have gone through a financial hardship due to either unemployment or large reduction in income.

The FHA Back to Work – Extenuating Circumstances program waives the 3 year waiting period for an FHA loan approval after a foreclosure or short sale, as well as the 2 year waiting period after a bankruptcy. 

How do I qualify for the FHA Back To Work – Extenuating Circumstances Program?

1) You must have been through what FHA is calling an economic event, which would include a loan modification, short sale, foreclosure, pre-foreclosure sale or deed-in-lieu of foreclosure, Chapter 7 or 13 bankruptcy, or something to that effect.

2) You must demonstrate that you have had a full recovery from the economic event.

3) You must complete housing counseling before closing.

4) You must show that your household income declined by 20% for six months or more during the above economic event, as described in 1).

What does this mean for people who have gone through an economic event?

Provided you qualify for an FHA-backed loan, (note, you still have to have the minimum credit scores, income-to-debt ratios, and other qualifications as regular FHA loans,) you now only have to wait ONE YEAR after your economic event to buy a house.

Thank you to Dan Green of Waterstone Mortgage for the above details.

Please note that I am not a loan officer, but have a few that I could send you to, in order for you to find out whether you could qualify for the FHA Back To Work – Extenuating Circumstances program, or even just for a regular FHA loan.

The above is GREAT news for those who have gone through economic hardship recently, yet who are back on their feet and would like to buy a house again!

If you’d like to find out more about FHA loans in Baltimore, or buying a house in Baltimore, please let me know. I would be happy to help!

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