If you are back to work, you may qualify for a new home loan, even if you have had a foreclosure, short sale, deed-in-lieu or have declared bankruptcy.
Dear Friends,
Under the new federal program called “Back to Work”-Extenuating Circumstances”, If you have had a foreclosure, short sale, deed-in-lieu, or have declared bankruptcy you may qualify for a new home loan if you are back to work and can document the extenuating circumstances. Housing and Education Alliance (HEA) is here to help you complete the program qualifications. We are here to help you get the required counseling that is needed to obtain a new FHA mortgage – even if you’ve recently lost your home or declared bankruptcy.
Do You Qualify?
FHA will consider you for eligibility if you had a financial hardship in the past but can now document the following circumstances about yourself:
- You can document the mortgage or credit problems resulted from a financial hardship
- You have re-established a responsible credit history for the most recent 12 months
- You have completed HUD-approved housing counseling
FHA “Back to Work” Program: Get your Counseling Requirement Fulfilled Here at HEA!
A lender will first have to determine if you meet the FHA loan requirements before you can apply for a FHA loan under the Back to Work program. You will need to explain how the financial hardship was something beyond your control that reduced your income or caused you to lose employment. If your household income dropped by 20% or more for at least six months, it may count for this type of financial hardship. To re-establish credit you must have a 12 month record of on-time rental housing payments with no delinquencies, and not have been 30 days late on more than one non-housing loan payment. If you still have any open collection or judgment accounts, then a “capacity analysis” will be done to see if you can repay those creditors.
How to Get Started
To start an application with a FHA-lender you must first take a “Pre-Purchase Counseling” session with a HUD approved housing counseling agency 30 days before you start an application. A certified counselor will assess your debt, ability to afford the mortgage, features of the mortgage, explain mortgage insurance and the loan application process. Housing and Education Alliance (HEA) is a HUD approved housing counseling agency, and can help you make sure you have done everything you need to do to access the “Back to Work-Extenuating Circumstances” program. Your counseling certificate is valid for 6 months. HEA’s Back to Work Pre-purchase Counseling offers the HUD-approved housing counseling that is required for your FHA loan application.
To schedule your appointment please send an email with two or three choices of dates and times to info@heausa.org and we will confirm a day and time. In your email, please indicate your name, address, phone and email address.
If the recession caused a loss of income that led you to lose your home or declare bankruptcy just read and complete the information below:
Download the Back to Work Packet…
$125 service fee covers one single person or one married couple. Each additional person requires a separate $125 fee.
