FHA “Back-To-Work: Extenuating Circumstances” Program
FHA addresses the economic down turn by providing a second chance for buyers who have experienced financial hardship as a result of unemployment or severe reduction in income. If you or someone you know has experienced extenuating circumstances and an economic event such as:
- Foreclosure or Pre-Foreclosure
- Deed-in-Lieu
- Short Sale
- Loan Modification
- Chapter 7 or 13 Bankruptcy
- Forbearance Agreement
They may be eligible to apply for an FHA-insured mortgage after just 1 year instead of the standard 2-year waiting period for bankruptcy or 3-year waiting period for a short sale or foreclosure!
This is great news for eligible buyers whose extenuating circumstances were the result of an economic event due to loss of employment or reduction in income (20% or more) for a period of at least 6 months*. In addition, the following will be required:
Documentation that the derogatory credit was a result of loss of employment or a significant loss of household income beyond the buyers control
Minimum of 12 months must have elapsed since the derogatory credit event
Demonstration of full recovery from the event with 12 months satisfactory credit. Upon review of the credit report, the lender will attempt to determine 3 things:
- Good credit history prior to the event
- Derogatory credit occurred after the onset of the economic event
- Reestablishment of a 12-month perfect payment history on major accounts
Buyer must complete housing counseling:
- Housing counseling must be from one of HUD’s approved counseling agencies found on the HUD website. For a list of agencies, go to www.hud.gov or call (800) 569-4287.
- Housing counseling must be done a minimum of 30 days prior to going under contract on the home but no more than 6 months prior
This program can be used for first-time home buyers and repeat home buyers. Call us today for more information and to see if you are eligible for this new FHA Back-to-Work: Extenuating Circumstances program!
*For purposes of assessing loss of household income, household members means individuals residing at the residence at the time of the economic event AND who were borrowers on the previous mortgage.
Disclaimer: Cherry Creek Mortgage Co., Inc. is not endorsed by, nor acting on behalf of or at the direction of, the U.S. Department of Housing and Urban Development, Federal Housing Administration, the Veterans Administration, the U.S. Department of Agriculture or the Federal Government.
Home Buyer Tips
- 2 Myths That May Be Holding You Back From Buying
- 5 Reasons Home Ownership is a Good Financial Investment
- Do’s and Don’ts During The Loan Process
- FHA 90 Day Property Flip Waiver
- Getting a Mortgage: Why So Much Paperwork?
- How to know if it’s a condo?
- Look for a Luxury Home? Now’s The Time To Act!
- Ready To Make An Offer? 4 Tips For Success
- The Perfect Home Loan Application
- What You Need To Know About VA Loans
- Condo Loans - Low Down Payment
- How We Safe Guard Your Information
- Mortgage Insurance
- Niche - Unique Mortgages
- Path 2 Buy
- Rent vs. Buy
- Rising Rent - No Problem
- Student Loan Debt
- The Mortgage Process
- USDA-Wide Open Spaces
Homeowner Tips
Tax Information
Loan Programs
- FHA “Back-To-Work: Extenuating Circumstances” Program
- FHA 203k Streamline Rehab Loan
- HomeStyle Renovation
- HUD-184 Native American Program
- Jumbo Loans
- Veterans Assistance Loan Benefits
- Reverse Mortgage
- 3 Reasons Why First-Time Home Buyers Love FHA
- FHA - Home Ownership Opportunities
- FasTrac Approval Process
- Home Ready Program
- Jumbo Plus Loans
- Loan Programs - Pros & Cons
Closing Information
Financing Information
- How Low Interest Rates Increase Your Purchasing Power
- The Power of Pre-Approval for Agents
- Where Are Interest Rates Headed?
- Why Pre-Approval Should Be Your First Step
- Delayed Financing Options
- Discount Points vs Premium Pricing
- Duplex Financing Options
- FICO Scores
- Flipped Property Finance Options
- Jumbo - Credit Challenged
- No Lender Fees
- Refinancing
Specialty Programs
- Union Advantage
- FHA - Benefits
- FHA - Credit Requirements
- FHA - Limited Savings
- FHA - Refinance
- Family Opportunity Program
- Fannie Mae - 97% LTV
- HomeScout: Your Unfair Advantage
- Jumbo - Medical Loan Program
- Luxury Home - 2 Million Max
- NHF Platinum - Down Payment Assistance
- Non-Resident Alien Home Loan