FHA "BACK TO WORK PROGRAM" We all know how difficult it is to financially recover from a traumatic financial loss following a property foreclosure, or even a softer loss following a short sale. In most cases, a homeowner who lost a property to foreclosure may not be able to qualify for a new conventional mortgage for up to seven (7) years after losing a home. Under Federal Housing Administration (FHA) historical guidelines, homeowners who lost their homes due to a short sale or foreclosure must wait about 36 months before obtaining a primary residence financed by an FHA loan (the VA and USDA also offer similar opportunities to qualify after 36 months). Recently, the FHA instituted its "Back to Work Program," which allows buyers to purchase a primary home as soon as 12 months following a short sale, foreclosure or deed in lieu of foreclosure. The program has been extended to September 30, 2016. The following is a brief synopsis of the requirements to qualify for the program: 1. The Buyer must show a 20 percent loss in income for at least six consecutive months prior to losing the home (either through foreclosure, short sale or deed in lieu). 2. The Buyer must document that the loss of the previous home was truly due to circumstances beyond your control. Most people who qualify satisfy this requirement by showing the 20 percent loss in income in the first requirement, above. Inability to rent a previous income producing property or even divorce are not sufficient reasons to qualify. 3. The Buyer must show that they have taken steps to re-establish their income and credit and are paying their other obligations as needed. 4. The Buyer must have a credit score of at least 640 or have completed a HUD-approved counseling agency program on homeownership or residential mortgage loans. For realtors working with buyers who intend to purchase a property under this program, it is important to remember that the counseling requirement must be completed a minimum of 30 days but no more than 6 months prior to submitting a loan application. If you or any of your clients are interested in the Back to Work Program, or if you are representing a buyer that is intending to purchase a property using this program, you can learn more information about it at: http://portal.hud.gov/hudportal/documents/huddoc?id=13-26ml.pdf. As always, should you have any questions about the foregoing, we advise that you please consult a real estate attorney.
This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.
Author:Kathy Toonder Phone: 941-544-7270 Dated: April 21st 2014 Views: 1,188 About Kathy: I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s...
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I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s Gulf Coast. Thirty years ago I came from Michigan to the Sarasota area to enjoy the beaches of the Sunshine State. The “Beach Communities” Longboat Key, Lido Key, Siesta Key and Casey Key are what draw everyone to make Sarasota their home!
Sarasota the “Cultural Capital” of Florida attracts homeowners that want more than just a beach experience. Sarasota and Manatee communities with the growth of new housing maintain their elegant but laid back style. It is a great place to make it your home to be able to enjoy lush natural environment and the amenities of a modern city.
I became a home owne r in Lakewood Ranch an award winning 17,500 acre site that provides a beautiful master planned, maintained and golf community. Get the picture: blue waters, white sand, plenty of sun, blue skies, fabulous food, casual outdoor dining, amazing fishing, play golf, boat races, music and art festivals….
My focus is to best understand the goals and visions of my clients, ensuring all decisions are made with a wealth of information and the necessary tools for a successful, rewarding experience.
I have found my “Slice of Heaven” I look forward to you finding yours!
Check Your Furnace/Air FilterDepending on the size of your house and w
"She went above and beyond to help us find a home in Venice Florida. She made herself available any time we asked to see a home whatever time of the day. She is an excellent asset to the Exit Realty Team. We would definitely use her services again. Heidi & John Tramburg"