The FHA Back to Work program has been a god send for many borrowers who due to the recent recession may have experienced financial difficulty resulting from extenuating circumstances. These financial difficulties until the introduction by FHA of the Back to Work mortgage program may have prevented such borrowers from realizing their goals of home ownership.This program is for home purchases only, not for refinances.
FHA (the Federal Housing Administration) recognized the hardships that many Americans were facing and created the Back to Work program to help those borrowers whose credit histories may not accurately describe their true ability to pay a mortgage loan.
FHA Back to Work Program Details:
What: The FHA Back to Work Program will allow qualification “consideration” for mortgage borrowers who can document that they experienced “economic events” which resulted in negative credit ratings due to loss of employment or changes in employment that led to a significant loss of household income. The economic event must have been out of the borrower’s control.
How: In order to qualify for Back to Work, potential borrowers must demonstrate full recovery from the “economic event” and complete housing counseling.
When: The FHA Back to Work program will only be available to borrowers until Sept.30, 2016.Click here to apply now.
Other: In order to prove that the borrower’s negative credit score happened due to an economic event that was out of their control, the following criteria must be shown:
- borrower must have shown satisfactory credit before the economic event
- borrower’s negative credit events must have occurred after the economic event’s onset.
- borrower must have re-established at least 12 months of satisfactory credit.
- if a foreclosure occurred as a result of the economic event then at least 12 months must have passed since the date of foreclosure.
- if a bankruptcy occurred as a result of the economic event then at least 12 months must have passed since the discharge date of the bankruptcy.
Every situation is different so not everyone will qualify for a mortgage under the FHA Back to Work program. For general questions or to see if you qualify for this and other mortgage programs please call 616-774-9160 x 237 and ask for Jim Polakovich our FHA Back to Work specialist. NMLS#138361