The FHA "Back To Work" Program Is Official

The FHA has waived its 3-year foreclosure waiting period.

 

Effective immediately, the FHA is waiving the 3 year waiting period after a foreclosure and the 2 year period after a bankruptcy for people who can show that they have recovered from a negative financial event and that have a good payment history for the past 12 months. This could help some people hurt by the recent financial mess be able to buy a house again.

This applies to FHA Case Numbers assigned on, or after, August 15, 2013, borrowers with a recent history of bankruptcy, foreclosure, judgment, short sale, loan modification or deed-in-lieu can apply and get FHA-approved for an FHA-insured mortgage.

 

The FHA "Back To Work" Program Is Official.

FHA mortgage insurance is available for any loan which meets the following two conditions:

1.The loan must be made by an approved FHA lender
2.The loan must meet the minimum standards of the "FHA Mortgage Guidelines" 

The minimum standards of the FHA mortgage guidelines are straight-forward. Some of the more well-known rules require mortgage applicants to show a minimum credit score of 500; to make a downpayment of at least 3.5% on a purchase; and, to verify income via W-2 or federal tax returns.
The guidelines also include such arcane topics as U.S. citizenship requirements for borrowers; relocation rules for trailing homes and income; and, minimum standards for condominiums and co-ops.
Loans failing to meet FHA mortgage guidelines do not get insured and the Federal Housing Administration has been steadily tightening its requirements since last decade's housing downturn.

On August 15, 2013, though, the Federal Housing Administration moved to relax its guidelines for borrowers who "experienced periods of financial difficulty due to extenuating circumstances".
Dubbed the "Back To Work - Extenuating Circumstances Program", the FHA removed the familiar waiting periods that typically followed a derogatory credit event.

If you've experienced any of the following financial difficulties, you may be program-eligible :
•Pre-foreclosure sales
•Short sales
•Deed-in-lieu
•Foreclosure
•Chapter 7 bankruptcy
•Chapter 13 bankruptcy
•Loan modification
•Forbearance agreements

The FHA realizes that, sometimes, credit events may be beyond your control, and that credit histories don't always reflect a person's true ability or willingness to pay on a mortgage.

If you're a Real Estate agent, an investor, or a seller, this news can help you to get your listings/property sold. Visit www.Hud.gov for more info