Online Home Mortgage Lenders Work with Every Situation

Borrowers love the benefits of working with “Back to Work” program lenders

Foreclosure, prior short sale, bankruptcy and deed-in-lieu can leave families financially struggling for years. Previously, the Federal Housing Administration (FHA) required that online home mortgage lenders support two to three year waiting periods for families battling an unfortunate economic event.

Mortgagee Letter 2013-26, released on August 15 of last year, states, “FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

The FHA launched its “Back to Work – Extenuating Circumstances” program, which allows recovering families to apply for a new mortgage only 12 months after losing a home until September 30, 2016.

Economic events result in loss of employment or income which causes a total household income to drop by 20 percent or more for at least six months. In turn, this causes families to lose their homes and possessions.

The program allows borrowers to put down only 3.5 percent on a mortgage with no premiums and no additional fees at closing. Mortgage rates in the program are the same as mortgage rates outside of the program.

Prospective “Back to Work” borrowers that have yet to be discharged from Chapter 13 bankruptcy must obtain written permission from the Bankruptcy Court before program eligibility.

All prospective borrowers must complete a minimum of one hour of one-on-one housing counseling by a Housing and Urban Development approved agency, which can be found at

“Housing counseling is an important resource for both first-time home buyers and repeat home owners,” FHA’s letter states.

The session must address the cause of the borrower’s economic event and be completed between 30 days and six months, prior to submitting a new home loan application.

Mortgagee Letter 2013-26 states, “Housing counseling enables borrowers to better understand their loan options and obligations, and assists borrowers in the creation and assessment of their household budget, accessing reliable information and resources, avoiding scams, and being better prepared for future financial shocks, among other benefits to the borrower.”

Although the FHA has recognized that bad credit does not imply a prospective borrower’s ability to repay a mortgage, it is still determined to find families who are fully recovering with satisfactory credit. “Back to Work” program lenders verify that each borrower’s credit history is free of delinquency, late housing, installment debt payments and other derogatory credit issues.

Borrowers with credit scores below 500 are not allowed to apply, but borrowers with no credit score remain eligible.

Losing a home can be a rough and frightening experience, but it’s not too late to apply through Back to Work program lenders. If your current lender is not participating, there are online home mortgage lenders willing to work with every situation.

Back To Work Mortgage Lenders Offer a Big Helping Hand

Lending agencies are offering shorter waiting periods through the “Back to Work” home loan

On Aug. 15 of last year, the Federal Housing Administration (FHA) released Mortgagee Letter 2013-26, stating that borrowers who have experienced an unfortunate financial event may now begin a new mortgage loan only twelve months after losing a home. Previously, families who faced financial crises had to wait two to three years to start a new loan application.

“FHA is continuing its commitment to fully evaluate borrowers who have experienced periods of financial difficulty due to extenuating circumstances,” the letter stated.

The “Back to Work — Extenuating Circumstances” program, which began on Aug. 15 after the release of the mortgagee letter, will run through Sept. 30, 2016.

Through the Back to Work home loan, borrowers may put down only 3.5 percent on a mortgage with no premiums nor fees at closing. Mortgage rates are equivalent to the rates of any other FHA loan.

Not everyone may participate in the program. A prospective family must be facing an economic event, which the FHA defines as “any occurrence beyond the borrower’s control that results in loss of employment, loss of income or a combination of both, which causes a reduction in the borrower’s household income of 20 percent or more for a period of at least six months.”

This means that families with financial crises like deed-in-lieu, bankruptcy, foreclosure, short sale, loan modification and forbearance agreement are eligible to apply if they have experienced a significant reduction in income from everyone in the borrower’s household.

Back to Work mortgage lenders must be able to verify a loss of employment or loss of business rom “Back to Work” borrowers through a written document.

The FHA also requires families to be fully recovering and verify proof of satisfactory credit. The borrower’s credit history must be clear of late housing, installment debt payments and delinquency. Borrowers with credit scores below 500 are not eligible. However, those with no credit score are allowed to participate.

To continue boosting families’ credit scores, the FHA requires that “Back to Work” mortgage lenders ensure borrowers take part in one hour of one-on-one housing counseling in person, online or by phone.

Mortgagee Letter 2013-26 states, “Housing counseling is an important resource for both first-time home buyers and repeat home owners.” “Back to Work” home loan counseling must review the cause of the family’s financial crisis. For eligibility, participants must complete a minimum of 30 days but not beyond six months prior to submitting a new loan application.

Housing counseling helps borrowers better understand their home loan options and obligations, as well as help assist borrowers in the creation of a budget.

Revive Your Home Ownership Dream through the Back to Work Program

It is every American’s dream to own a home. That is why people have been flocking to lenders seeking to be given a mortgage. However, recent foreclosures have made the prospect so scary. First timers are afraid of trying while prior owners are yet to recover from the shock of losing the only homes they ever owned. Before gaining an understanding of where this fear comes from, it is important that you understand what it takes to qualify for a mortgage.

When you make an application, your lender will scrutinize it thoroughly. The aim is to find out about your sources of income and overall expenditure on a month by month basis. Eventually, your lender will be able to compute the amount you will be expected to pay every month for the entire period of the mortgage. Other things that will come under focus include college loans, car loan and other debts. Once the lender has a clear picture of your income and expenditure, it becomes clear whether you qualify or not.

There are numerous other issues involved. Once you get the final approval, the property seller is paid and you take occupancy. Along the way, you could end up losing your job owing to a number of reasons such as redundancy, illness or economic recession. This renders you incapable of meeting your monthly mortgage payments. Eventually, the lender takes away the house. This is where the Back to Work Program comes in.

Through this program, you realize that all is not lost. The FHA has now made it possible for you to buy a home one year after a foreclosure. Even if you had filed for bankruptcy, you can still be on course to acquire a new home. However, the Back to Work Program has a number of conditions:

1. You must have gone through what is described as an economic event. This includes things like bankruptcy filing, foreclosure and short sale.

2. It must be proven that you have shown signs of economic recovery.

3. You should be ready to attend counseling on home ownership.

The Back to Work program also frees you from a number of waiting periods that are set for anyone coming out of foreclosure and bankruptcy. You should also have maintained a good credit history during the last 12 months prior to applying for a mortgage. Under this program, millions of Americans can now realize their previously quashed dreams.