“The FHA Back To Work Loan” program allows homeowners who lost their house through a foreclosure, short sale, or a deed-in-lieu a second chance at homeownership. Realtors, especially those who specialize in listing short sales, need to learn the lender guidelines for the FHA Back To Work Loan program. After all what better group of housing professionals exist than Realtors, who acted as Listing Agents for homeowners going through a short sale, in communicating to their former Clients, that the new FHA Back To Work Loan program will now allow them once again a chance to become homeowners.
To qualify for a FHA Back To Work Loan the borrower must have expressed an "Economic Event". An Economic Event is the loss of employment, loss of income, or a combination of both, that is deemed beyond the borrower's control, resulting in the borrower's Household Income dropping 20% or more for a period of at least six months. For the purpose of the Back To Work loan program, household income is defined as a borrower and/or co-borrower on the current mortgage loan if the Economic Event resulted in a bankruptcy and the borrower and/or co-borrower on the previous mortgage loan if the Economic Event resulted in a foreclosure.
I know there are many cynics who will argue against this program as being too forgiving and giving loans to unqualified borrowers. As oppose to assuming that previous homeowners that lost their houses through a foreclosure, short sale or a deed in lieu somehow are taking advantage of the system show some empathy. The vast majority of these folks played by the rules, had good credit, and responsibly managed their finances going into the recession. Through events outside of their control they lost their job and their home.
These former homeowners have now rebuilt their credit, finances, and savings. All they want is to own a home of their own and the FHA Back To Work Loan affords that opportunity. Why not help the housing recovery along by extending mortgage credit to these disenfranchised potential home buyers. For more information on the FHA Back To Work Loan program go to fhabacktoworkloan.com for a complete overview of the loan program guidelines or call me at (866) 305-7808.