FHA “Back to Work” Program
Have you suffered a foreclosure, short sale or bankruptcy due to an unforeseen financial hardship? We’ll good news! With the FHA “Back to Work” program, you may be eligible to purchase a new home in as little as 1 year from the discharge date!
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This program is specifically designed for borrowers who have had an “Economic Event” that had a direct impact on the borrower’s ability to repay the mortgage.
According to FHA, the Economic Event must have occurred to someone listed on the previous mortgage that went to foreclosure. It must have resulted in a minimum 20% reduction in the household income for a minimum of 6 months. The borrower must have since fully recovered from this financial hardship.
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The borrower is also required to attend a credit counseling class offered by FHA.
This is a great program, and a step in the right direction for people that were, in fact, impacted by the down economic times and were forced into a situation regarding their personal finances.
Normal FHA guidelines do apply, including the borrower having a minimum down payment of 3 ½%.
If you feel you may qualify for this program, it would be good to contact your mortgage professional as other guidelines do apply.
