Back To Work Extenuating Circumstances: One Year Waiting Period

HUD’s new FHA Back to Work Extenuating Circumstances due to an economic event was launched last August 15, 2013 and shortens the waiting period for those who filed bankruptcy or had a foreclosure, deed in lieu of foreclosure, or short sale to a one year waiting period.  Not too many residential mortgage lenders offer the Back to Work Extenuating Circumstances due to an Economic Event mortgage program but to those that do, there were many growing pains.  It seems like most Back to Work Extenuating Circumstances mortgage lenders now have fine tuned this program.  The Back to Work Extenuating Circumstances one year waiting period after an economic event is a great program for those who qualify.

How Do I Qualify For The Back To Work Extenuating Circumstances?

To qualify for the HUD’s new FHA Back to Work Extenuating Circumstances one year waiting period after a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale, the mortgage loan borrower needs to have been unemployed or underemployed for at least six months prior to the initiation of the economic event.  The economic event is the bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale.  The mortgage loan borrower also need to show that the unemployment or underemployment have caused at least a 20% reduction of household income.  The reduction of household income needs to be verified via income tax returns, W-2s. and/or paycheck stubs.  The 20% reduction of household income is a major factor in qualifying for the Back to Work Extenuating Circumstances mortgage program.  I had a recent denial of the Back to Work Extenuating Circumstances where the mortgage loan borrower has qualified for every other aspect where they were unemployed but did not meet the 20% reduction in income.  The mortgage loan borrower needs to not have any late payments after the bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale and have re-established credit.  To qualify for the Back to Work Extenuating Circumstances mortgage loan program, the mortgage loan borrower needs to complete a HUD approved housing course and cannot apply for an official mortgage loan after 30 days from the issuance of the housing certificate.  The HUD approved housing certificate is good for a period of 6 months from the issuance date.

How Do I Go About To See If I Qualify For The Back To Work Extenuating Circumstances Mortgage Program?

If you are a mortgage loan borrower interested in the FHA Back to Work Extenuating Circumstances due to an economic event mortgage loan program in Illinois, Florida, Wisconsin, Indiana, or California, I can help you.  You first need to do two things.  Go to www.gustancho.com and click on the APPLY NOW icon on the top right of the website and complete the 4 page 1003 mortgage loan application.  Simultaneously, I need a detailed letter of explanation on the circumstances leading to your bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale.  Remember that the Back to Work Extenuating Circumstances due to an economic event has to do with unemployment or underemployment for at least six months prior to your bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale and a least a 20% reduction of household income.   You also needs to provide two years of income tax returns, W-2s, and/or pay check stubs so we can verify that you did have a 20% reduction of household income.  I will then run a soft pull tri-merger credit check to review your credit report and credit scores.  I will then submit it to an underwriter for an initial review to see if you qualify for the Back to Work Extenuating Circumstances mortgage program.  If I get a thumbs up, you need to sign up for the HUD approved counseling course and we are ready to process your mortgage application 30 days from your housing course completion date.  You will be issued a pre-approval so you can start home shopping.

Other Qualifying Factors For Back To Work Extenuating Circumstances

All FHA Back to Work Extenuating Circumstances due to an economic event mortgage loans are manually underwritten.  The maximum front end debt to income ratio cap is 31% and back end debt to income ratio cap is at 43%.  These caps can be exceeded if compensating factors exists for the mortgage loan borrower.  Again, if you are a mortgage loan borrower in Illinois, Florida, Wisconsin, California, or Wisconsin and are interested more in HUD’s new FHA Back to Work due to an Economic Event mortgage loan program, please contact me at 262716-8151 or at www.gustancho.com .

Gustan Cho NMLS ID 873293

www.gustancho.com

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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