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FHA Back to Work Extenuating Circumstances due to an Economic Event
#1
[b]FHA BACK TO WORK EXTENUATING CIRCUMSTANCES DUE TO AN ECONOMIC EVENT SHORTENS THE WAITING PERIOD AFTER BANKRUPTCY, FORECLOSURE, DEED IN LIEU OF FORECLOSURE, AND SHORT SALE TO ONE YEAR.

Good news for home buyers who had a prior bankruptcy, foreclosure, deed in lieu of foreclosure, short sale. HUD, The United States Department of Housing and Urban Development and parent of the Federal Housing Administration, has launched the FHA Back to Work Extenuating Circumstances due to an Economic Event on August 15, 2013 where it shortens the waiting period after a bankruptcy, foreclosure, deed in lieu of foreclosure, and short sale to a one year waiting period for qualified home buyers.

To qualify for the FHA Back to Work mortgage program, the mortgage loan applicant needs to have been involuntarily out of work or the company that he or she was working for had to have gone out of business and due to this fact, the mortgage loan applicant had a reduction of 20% of their household income and due to this reason, this was the cause of the initiation of the foreclosure, bankruptcy, deed in lieu of foreclosure, or short sale. The mortgage loan applicant had to have good credit until the loss of their job, then the credit would have suffered due to being out of work, and after they have gained full time employment, they need to have re-established their credit and not have any late payments.

FHA Back to Work mortgage program are all manual underwrites and the maximum front debt to income ratios allowed is 31% and maximum back end debt to income ratios allowed is 43%.

 
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#2
Here is an article on the FHA Back to Work Extenuating Circumstances due to an economic event that might help readers understand it more in detail.

http://gustancho.com/fha-back-to-work/

Self test on whether you qualify for the FHA Back to Work Extenuating Circumstances due to an economic event article.

http://gustancho.com/fha-back-to-work-mortgage/

 
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#3
HUD's FHA Back to Work Extenuating Circumstances due to an economic event mortgage loan program is extremely difficult to get approved for. The home buyer needs to prove that he or she has been terminated from his or her employer or the employer needs to have gone out of business. If the mortgage loan borrower has quit his or her employment because of rumors that the business was going to shut down or rumors that the company will do major layoffs, this will not qualify someone for the FHA Back to Work Extenuating Circumstances due to an economic event mortgage loan program. Most FHA Back to Work mortgage lenders will require a termination letter from the employer who laid them off or proof that the company has shut down. For people who had their own business or were 1099 wage earners, they will not be able to qualify for HUD's FHA Back to Work Extenuating Circumstances mortgage loan program. HUD considers those who were self employed or 1099 wage earners whose business shut down due to the economic collapse as sophisticated folks who took a calculated risk and that their business did not work out. Here is an article on HUD's BACK TO WORK EXTENUATING CIRCUMSTANCES DUE TO AN ECONOMIC EVENT MORTGAGE LOAN PROGRAM

http://gustancho.com/fha-back-work/

Article on letter of explanation for back to work extenuating circumstances due to an economic event mortgage loan program

http://gustancho.com/letter-explanation-...mic-event/


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