FHA Back To Work Mortgage Experience

This Blog Article On FHA Back To Work Mortgage Experience Was Written By Bob Vogel

Big Banks Only Want 800 Credit / FHA Back to Work Mortgage Experience

I for one know firsthand about the headaches of trying to get a mortgage through the big banks or large lending institutions.  Quite frankly, if you don’t have stellar credit and ample funds in your possession, good luck getting the time of day from these guys.  Let me be honest with you, I don’t have perfect credit by any means.  I had a bankruptcy and foreclosure 5+ years ago which left my credit with a big black eye.  The background behind this was the loss of a job, but as they say, so was life during the recession.  When your household income is cut in half, it is hard to stay current and afford everything.  We did what we had to do and we moved on.  We slowly got credit cards back in our names, financed a vehicle, and had a perfect 2.5 years of payments while renting so we were slowly building up some positive history.

FHA Back To Work Mortgage Experience: Qualifying For Home Loan After Bankruptcy And Foreclosure

I thought that I needed to wait 4-5 years before I was ever going to be able to buy a home again, but I was totally wrong.  The lifeline came to me in August of 2013 under the FHA’s “Back to Work” program.  Per the FHA’s release: “Provide minimum underwriting standards and criteria for evaluating borrowers who have experienced an Economic Event, as defined in this ML, that resulted in a severe reduction in income due to a job loss or other circumstances resulting in reduced Household Income.”  If there was ever a perfect scenario for my situation this was it.  We lost 50% of our household income, we experienced adverse credit events, we righted the ship and got our financial situation back in order.  My first thought was “let me start calling banks and mortgage brokers and since FHA told lenders to start approving loans with these qualifications, I should get approved no problem!”  Boy was I ever wrong.

FHA Back To Work Mortgage Experience: Finding The Right Lender

I personally called or emailed about 15+ lenders in the span of about 2 weeks and to be honest, nearly every answer coming back from them was 1 of 2 responses:

1.       Just because FHA wants us to do this, doesn’t mean we have to.  We need to take time to investigate this fully.

2.       This is going to require a manual underwrite, so we aren’t going to do that.  (What this means is in these cases a physical person is going to have to review the file, determine the event, and make sure the borrower has met all requirements.)

All I can say is this just demonstrated just how lazy the big banks and mortgage lenders are.  They don’t want to do the little extra work to get someone a home who truly deserves it.  What these banks want to do is put borrower’s info into Desktop Underwriter or Loan Prospector (these are Fannie Mae’s and Freddie Mac’s automatic underwriting software) and have the computers tell them who should or shouldn’t receive a loan.  Anyone can do this as a mortgage loan originator or mortgage underwriter, but in my case, I needed someone who actually cared about my situation and wanted to help me.

FHA Back To Work Mortgage Experience: Finding A Lender On The Internet

So after a few weeks of hitting dead-ends I finally came across a Google search for “FHA Back to Work” and Gustan Cho, the Sales Manager at The Money Store got returned in my search.  I initially thought, why not give him a try as everyone else has told me “no,” so I was prepared in a sense to get rejected again.  Boy was I wrong, Gustan Cho at The Money Store knew all about this loan program and after going through my background and situation felt that I was a prime candidate to get approved to purchase again.  Now, let me tell you, unlike a conventional loan, the documentation needed for this program is extensive as borrower’s need to be fully vetted before they will receive a loan.  The underwriter will comb thru everything in your history, the economic event, your bank statements, tax returns, bankruptcy filings, foreclosure filings, etc.  I did my best in getting the underwriter the required documents and “letters of explanations” (lox) to finally get approval to purchase my home within 30 days of reaching out to Gustan Cho.  If it wasn’t for Gustan Cho and his team at The Money Store, who knows where I would be today or how my life would be different!

FHA Back To Work Mortgage Experience: My Conclusion By Bob Vogel

In conclusion, if you have recently gone through some tough times, just stay positive and know that there are programs out there for you to use.  The worst thing you could ever do is go to the big banks or lenders as you will get the door slammed in your face every time.  If there is the slightest hint of risk, you will almost automatically get a “no.”   You just can’t take this to heart, as you need to find the right lender for you and your situation.

About The Author: Bob Vogel

Bob Vogel is a previous client of Gustan Cho. Bob Vogel is one of the most talented and knowledgeable individuals I have ever met. Bob is a veteran accountant by trade by his extensive knowledge in real estate, finance, investments, and lending has amazed me and my partners that Bob Vogel is a consultant and senior writer to Gustan Cho Associates Commercial And Residential Mortgage Information Center . Bob Vogel’s passion to help people to help them make the dream of home ownership a reality has motivated him to get his NMLS mortgage loan originator license and has been hired by The Money Store. Bob Vogel will train to become a manager for The Money Store and manage a team of licensed mortgage loan originators once he is on board with us. His natural leadership quality and the extensive knowledge he has in all areas of finance and life experience makes him a natural for the mortgage lending industry and help our team grow to the next level. Looking forward to Bob Vogel’s future blogs in the coming days, weeks, and months. Stay tuned!!!!

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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