I’m pleased to announce that the Federal Housing Administration recently released new guidelines for borrowers who “experienced periods of financial difficulty due to “extenuating circumstances.” Now they are allowed to purchase a home with an FHA loan 12 months after a short sale or foreclosure!
Known as the “FHA Back To Work – Extenuating Circumstances Program”, the FHA removed the familiar waiting periods that typically followed a credit event that resulted in a default on a loan, and subsequent loss of the home.
This FHA loan program allows borrowers who were harmed financially due to loss of a job and/or a decrease in earnings of 20% or more that lasted 6 months or more. If the borrower can meet the criteria of the FHA Back To Work – Extenuating Circumstances Program, they could be eligible to obtain FHA mortgage financing after re-establishing good credit for 12 months after a short sale or foreclosure!
Eligibility
Borrowers must be able to document the circumstances and event that was beyond their control due to loss of employment or significant loss of income and must have recovered from the event (including reestablished satisfactory credit for a minimum of 12 months). HUD is also looking for a satisfactory credit history prior to the event.
A buyer may be eligible for the FHA Back to Work program if they have suffered the following:
Short sale
Deed-in-lieu
Foreclosure
Chapter 7 bankruptcy
Chapter 13 bankruptcy
Loan modification
Forbearance agreements
To qualify for the FHA Back to work Program, you must meet the minimum eligibility requirements.
*They must have experienced a negative economic event (short sale, deed-in-lieu, foreclosure, Chapter 7 bankruptcy, Chapter 13 bankruptcy, loan modification, forbearance agreement).
*They must demonstrate that their household income declined by 20% or more for a minimum period of 6 months, which coincided with the negative economic event.
*They must be able to show a full recovery from the impact of the negative economic event.
*They must complete housing counseling prior to closing.
For full details on the FHA Back to Work Program, please call me at
925-626-4617 or apply on-line at http://pfgbayarea.com/jack-reininga
“Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act.”
He brings 10 years of experience as a mortgage advisor and more than 20 years of experience in commercial and residential real estate in the San Francisco Bay Area. He holds a bachelors of science degree in economics from the University of Utah.
Reininga specializes in high-quality, fully documented conforming, jumbo, FHA and VA loans and has worked with experienced homeowners in both refinance and purchase transactions as well as serving first-time homebuyers.
“I don’t work inside a narrow box and we have a wide variety of loan programs to meet my customer’s needs at the most competitive rates in the industry. I also get to work alongside a team of highly experienced professionals from processing to underwriting…it’s great to be able to say that,” Reininga said.
To contact him, please call (925) 270-4738 or email jreininga@mmcdcorp.com.
Mason-McDuffie Mortgage is a privately held, mortgage banking firm headquartered in San Ramon. Its name dates to 1887 in the Bay Area real estate industry. For corporate information, please see www.mmcdcorp.com.
- Jack Reininga Joins Mason-McDuffie Mortgage Corporation - June 26, 2014
- Pacific Funding Group Streamlines Loans to Avoid Delays During Governmental Uncertainty - October 4, 2013
- FHA Back to Work: Extenuating Circumstances Program - September 20, 2013
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