Last month, FHA announced their new “Back-To-Work” program, allowing people to buy another home only 12 months after losing their prior home to short-sale, foreclosure, or bankruptcy. This program has the potential to help you or someone you know that lost their home in recent years due to economic hardship. In recent days some of our lenders have begun to implement the “Back-To-Work” program, so we are very excited to share it with you.
Prior rules required a 3-year waiting period, so this program will help get people on the track back to homeownership much faster than previously possible.
As with any loan program, there are fine-print details. Here are some of the highlights:
-Purchase loans only
-Borrower must have experienced an “economic event” that led to employment loss and/or income loss that reduced the household income by more than 20% for 6 or more consecutive months
-Housing Counseling certification program must be completed prior to applying for the new mortgage
-Satisfactory credit history in the past 12 months, thus showing the borrower has fully recovered from the economic event
Please get in touch with me directly or pass along this post to anyone else you know who may want to discuss the possibilities, benefits, and requirements of this new program.