This program has been around since 2013 but not everyone knows about this program. You or someone you know may benefit so check this out!
This unique “Back To Work” program allows the lender to waive the normal 3 year waiting period if a borrower has had any one or more of these Economic Events happened that resulted in;
- Pre-foreclosure sales
- Short sales
- Chapter 7 bankruptcy
- Chapter 13 bankruptcy
- Loan modification
- Forbearance agreements
It’s also important to note that an Economic Event is defined as a loss of employment, loss of income or a combination of both, the loss of income must be at least 20% for a period of 6 months. If you meet this requirement and a few others, your waiting period for a new FHA purchase loan is 12 months.
You must take, pass and get a Certificate for attending an approved HUD Homeownership Counseling Program. You must demonstrate a full recovery from the event and have extenuating circumstances that meet the guidelines set by HUD.
These extenuating circumstances is FHA-HUD’s second chance program for borrowers who have had financial hardship. What’s really cool is you can use this program for First Time Homebuyer, repeat buyer and FHA’s 203K which is their construction loan or rehab loan under the “Back To Work” program.
You better get your ducks in a row quickly however, this program is scheduled to end September of this year. So get on board and back into the housing market! Call me for a quick prequalification or questions on any type of real estate finance.
I welcome your comments and questions.
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ACMC Loan Consultant
Certified Mortgage Coach