What you need to know about the Back to Work loan program

Financial crisis? A new program called “Back to Work” home mortgage is waiting to help.

Due to the economic financial downturn over the past six years, families have been stuck in a drought of monetary instability. As consumer confidence begins to rise and some employment opportunities have returned, many families have been looking to buy a new home.

However, some buyers are still left credit-less because of a failed mortgage that resulted in prior foreclosure, prior short sale and even bankruptcy. At this point, what could be more terrifying than a complex loan process?

This past August, the Federal Housing Administration (FHA) launched the Back to Work home mortgage program, designed to ensure successful home-ownership for families who have previously had financial hardships. If your family has been suffering through foreclosure, short sales, deed-in-lieu, forbearance agreements, Chapter 7 or Chapter 13 bankruptcy, listen up.

Prove your economic event

In order to apply for a Back to Work mortgage loan, you must be able to prove that you’ve gone through financial hardships. These hardships must also lead to a documentation of credit impairments during the loss of employment or a significant loss of household income beyond your control.

Prove you’re fully recovering

If you are still financially unstable, you may not qualify to apply for the program. The mortgage is designed to give families a brighter financial outlook, but only if they can prove they’ll stay on track with monthly home payments. If you’re wondering if you qualify, Mortgagee Letter 2013-26 specifies who is eligible and in what circumstances.

Prove you’ve completed housing counseling

Housing counseling helps borrowers gain financial stability through providing advice. “Counseling” is typically portrayed as a negative term, but there’s nothing better than allowing someone to help guide monetary housing problems when you’ve faced a low point. Housing counselors help borrowers better understand their loan options and obligations, assist borrowers with their household budget, help avoid scams and better prepare their borrowers for future financial shocks. Sometimes, all you need is a helping hand.

If you can prove your past economic hardship, your full recovery and completion of provided housing counseling, a “Back to Work” mortgage loan is waiting to help you. Find a lender who is FHA-approved to get you started and you’ll be back on your financial feet in no time.

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Second Chance at Home-ownership

Everyone deserves a second chance.

Most of us have all been there at one time or another. An unexpected event comes along that changes everything. Illness, job loss, or unanticipated expenses can cause the most prepared families to find themselves in unfamiliar and frightening waters.

When this happens the impact can have serious and lasting effects. Most people find their sense of security within the walls of their home and if that is lost it can rock the very foundation that holds a family together.

So many families lost their homes during the housing crisis and many are now ready to rebuild. Rebuilding means finding a lending company that has the resources to service those who are less than perfect candidates on paper. The FHA home mortgage loan offered by the government is available to help this type of borrower, and combined with the guidance of the right lending firm, can provide the very combination necessary to put families back in their homes.

Those who have lost their homes due to pre-foreclosure sales, short sales or deed-in-lieu or foreclosure can apply for the FHA Back to Work Program. Lenders can help borrowers qualify for the program and re-enter the housing market, by identifying those borrowers who have experienced financial hardship due to extenuating circumstances and suggesting ways to take advantage of this opportunity offered by the government. As per the home mortgage loan program, a 3-year foreclosure, waiting period has been waived. Now borrowers need to wait only 12 months after a loss before reapplying for a government loan.

The right lender is key in this process of reentering the housing market and setting you up for success with a sustainable loan that works now and for the long term.