Letter Of Explanation For FHA Back to Work Mortgage Program
The United States Housing and Urban Development, commonly referred as HUD, has shortened the waiting period to one year waiting period for home buyers who had a prior bankruptcy and/or foreclosure last August 15, 2013 if the home buyer had been unemployed or underemployed six months prior to the bankruptcy and/or foreclosure.
One Year Waiting Period After Bankruptcy And Foreclosure
It is called the FHA Back to Work Extenuating Circumstances due to an economic event and strict guidelines apply. The most important factor to qualify for the new FHA Back to Work Extenuating Circumstances due to an economic event mortgage program is to provide a detailed written letter of explanation that details the borrower’s unemployment or underemployment that resulted in the decrease of at least 20% of their household income. The decrease of household income needs to be fully documented and supporting evidence, facts, and documentation needs to be provided with the letter of explanation.
Extenuating Circumstances That Do Not Meet FHA Back to Work Mortgage Program
There are instances where the FHA Back to Work mortgage program will not work. I have reviewed hundreds of Back to Work Extenuating Circumstances due to an economic event and not everyone qualifies. Although the Back to Work Extenuating Circumstances due to an economic event are for those home buyers who have been unemployed or underemployed for at least six months prior to the initiation of the bankruptcy and/or foreclosure, the unemployment cannot be voluntary. For example, a mortgage loan borrower who has quit his or her job voluntarily for a better job will not qualify since the extenuating circumstances was a voluntary move. The mortgage loan borrower needs to have been fired, laid off, or the company he or she worked for had been declared bankrupt or been out of business. It needs to be a situation where it was caused beyond the mortgage loan borrower’s control. Divorce, medical issues, or bailing on a home that is underwater will not meet the Back to Work Extenuating Circumstances due to an economic event mortgage program.
FHA Back to Work Extenuating Circumstances
If you feel you qualify for HUD’s new FHA Back to Work Extenuating Circumstances due to an Economic Event mortgage program, please contact me at 262-716-8151 or visit me at www.gustancho.com . I can tell you within minutes whether you are a candidate for this one year waiting period after a foreclosure and/or bankruptcy and will advice you on what we need to do to get you started. A one hour HUD approved course is required for candidates for Back to Work Extenuating Circumstances due an economic event mortgage program.