The Federal Housing Administration (FHA) has a program called Back To Work – Extenuating Circumstances which helps borrowers obtain a FHA mortgage who would otherwise not qualify due to scenarios that may not truly reflect their ability to repay a mortgage such as:

• Foreclosure
• Bankruptcy
• Short sales
• Deed-in-lieu
• Delinquencies, judgments or other indications of derogatory credit

Qualifications for Back To Work

• Borrower must show how certain credit impairments were the result of a loss of employment or significant loss of household income beyond the borrower’s control
• Borrower has to demonstrate full recovery from the event
• Borrower must complete housing counseling

Housing Counseling

• Counseling must be completed within a minimum of 30 days (but no more than 6 months) prior to submitting a loan application to a lender
• A minimum of one hour of one-on-one housing counseling and/or homeowner education counseling from a HUD-approved housing counseling agency
• Counseling must address the cause the borrower’s economic event and reduce the likelihood of it reoccurring
• Housing education can be accomplished through a HUD-approved housing counseling agency, state housing finance agency, or an online course

Learn more about this program here.

Contact your Sibcy Cline Mortgage Loan Officer here.