Have you experienced a hardship that caused you to lose your home or have a bankruptcy?
Did you know that with the Federal Housing Administration’s Back to Work – Extenuating Circumstances Mortgage Loan Program, you may be able to purchase a home after foreclosure or short sale within twelve months under certain conditions? This program shortens the waiting period to buy a home to as little as one year after you’ve had a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale.
How Does the Back to Work Program Work?
If you had a verifiable hardship and your income decreased by at least 20%, you may qualify for the Back to Work program. Under this program, you would be able to purchase a home within twelve months under certain conditions. If you’ve experienced any of the following financial difficulties, you may be program-eligible:
- Pre-foreclosure sales
- Short sales
- Chapter 7 bankruptcy
- Chapter 13 bankruptcy
- Loan modification
- Forbearance agreements
Borrowers, who may be otherwise ineligible for an FHA mortgage may be eligible for an FHA-insured mortgage if the borrower can:
- Document that the delinquencies and/or indications of derogatory credit are the result of an Economic Event as defined in this letter from HUD.
- Completed satisfactory Housing Counseling, as described in this letter from HUD and otherwise meets all other HUD requirements.
How Can Springboard Help?
Springboard has helped families come through financial downturns by successfully working with them on their credit, finances, down payment assistance, and providing a great mortgage loan option.
- Work with a certified Home Buyer Coach to fulfill this program requirement.
- Improve your credit through Credit.org‘s Credit Counseling services.
- Prepare for homeownership by taking our Home Buyer Class.
- Get a market-beating loan from our expert lending professionals.
If you have questions about the program, please contact us for more information.