FHA Back to Work Program
The Federal Housing Administration (FHA) recently announced its “Back to Work” program, which is giving individuals who suffered a long period of hardship during the recent housing crisis a second chance to prove they can carry a mortgage and own a home.
The program will waive many of the waiting periods associated with a significant “economic event” such as bankruptcy (Chapters 7 and 13), short sale or foreclosure.
Potential candidates may be first-time or repeat home buyers, and the program can be used for the 203K rehab loan.
FHA Back to Work Eligibility
To participate in the program, individuals must be able to demonstrate they’ve recovered fully from the “event”, and document the fact that they did have a household income loss of at least 20 percent for a period of at least six months that coincided with the “event.” They need to prove current, stable and documentable employment to qualify.
They also need to demonstrate a 12-month positive payment history, specifically on-time payment of all mortgage and installment debt.
FHA Back to Work HUD Counseling Sessions
Applicants also must attend counseling sessions before being able to participate in the program. This is usually a one-hour session with a HUD-approved counselor, and was designed to help participants prevent the “economic event” from happening again. Contact me today to learn more about this program!