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.