FHA Back To Work Mortgage Loans

HUD’ FHA Back to work extenuating circumstances due to an economic event mortgage loans shortens the waiting period to one year for those who had a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale.  Typically, there is a two year waiting period from the date of a bankruptcy discharge date, three year waiting period from the recorded date of a foreclosure or deed in lieu of foreclosure, and a three year waiting period from the date of the HUD’s settlement statement for short sale to qualify for a new residential mortgage loan.  However, HUD launched the FHA Back to work extenuating circumstances due to an economic event on August 15, 2013 which shortens the waiting period to one year for those with prior bankrtupcies, foreclosures, deed in lieu of foreclosures, and short sales.

Not Too Fast! Many Are Getting Denied For FHA Back To Work Mortgage Loans

Lately, I am getting many inquiries from mortgage loan borrowers who have gotten denied for the FHA Back to Work mortgage loans from their mortgage lenders.  The FHA Back to Work mortgage loans program is a newer type of mortgage program and they are all manually underwritten.  I have gotten FHA Back to Work mortgage loan approvals for FHA Back to Work mortgage loan borrowers denied by other mortgage lenders.  Since FHA Back to Work mortgage loans are manually underwritten, the decision on whether or not the FHA Back to Work mortgage application gets approved or denied totally relies on how the mortgage file underwriter interprets the extenuating circumstances on the letter of explanations.  There are cases where the mortgage broker will just read the letter of explanation and determines that his or her FHA Back to Work mortgage loan applicant qualifies for the Back to Work extenuating circumstances mortgage loan program.  The mortgage application gets submitted to underwriting and the underwriter determines that the letter of explanation of the extenuating circumstances does not match the W-2s, tax returns, and credit report.  The FHA Back to Work mortgage loan application gets denied, the mortgage loan applicant loses the earnest money and the home purchase.  There is a lot at stake with a FHA Back to Work Extenuating Circumstances due to an economic event mortgage file.  I am extremely careful with qualifying a FHA Back to Work mortgage loan application.

Back To Work Mortgage Lending Guidelines

To qualify for FHA Back to Work mortgage loans, the borrower needs to have had a significant economic event of unemployment or underemployment where it has a 20% reduction of household income for at least six months prior to bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale.  The borrower needs to have had good credit prior to the impact of the economic event and have since recovered after the bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale and have re-established credit and no late payments since.  The borrower needs to have completed a HUD approved housing counseling course.  The mortgage application cannot be date 30 days after the completion certificate of the housing counseling course.  If you are a mortgage loan borrower in Illinois, Florida, Wisconsin, Indiana, or California and if you feel that your qualify for FHA Back to Work Extenuating Circumstances due to an economic event, please contact me at 262-716-8151 or at www.gustancho.com .

By Gustan Cho

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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