This Article Is About FHA Back to Work Versus Other Loan Programs 

With traditional loans such a government loans and Conventional Loans, there is a mandatory waiting period after a Chapter 7 or Chapter 13 Bankruptcy discharged date to qualify for a mortgage loan.

• There are other loan programs available today such as NON-QM Loans where there is no waiting period after bankruptcy and/or foreclosure to qualify for a mortgage loan
• We will discuss some points in qualifying for a mortgage loan after bankruptcy and foreclosure

In this article, we will discuss and cover Differences Of The FHA Back to Work Versus Other Loan Programs.

Waiting Period Guidelines On Government And Conventional Loans

The current waiting period for a home buyer with a prior bankruptcy is two years from the discharge date of their Chapter 7 bankruptcy to qualify for an FHA Loan.

• The current waiting period for a home buyer to qualify for an FHA Loan who had a deed in lieu of foreclosure or foreclosure is three years from the recorded date of the foreclosure or deed in lieu of foreclosure
• FHA borrowers one year into a Chapter 13 Bankruptcy can qualify for an FHA loan as long as they have made 12 months of timely payments to their creditors
• There is no waiting period to qualify for an FHA Loan after a Chapter 13 Bankruptcy discharged date
• All borrowers who had a Chapter 13 Bankruptcy discharge need to be manually underwritten if their Chapter 13 Bankruptcy has not been seasoned for two years which requires rental verification
• There is a three year waiting period from the date of a short sale for a home buyer to qualify for an FHA loan
• HUD implemented the FHA Back To Work Extenuating Circumstances due to an economic event FHA Loan Program which shortens the waiting period to one year after a bankruptcy or foreclosure
• The FHA Back to Work Extenuating Circumstances due to an economic event mortgage program turned out to be a major flop and a losing proposition which really stressed out many FHA Borrowers
• The FHA Back to Work was supposed to give homebuyers who were forced into bankruptcy
• The borrower was forced to bankruptcy due to being out of work
• If this is the case, there is a chance to qualify for an FHA loan one year after bankruptcy or foreclosure

Most lenders found a way of not doing the loan than helping these borrowers get loan approval.

The Reduction Of The Mandatory Waiting Period After Bankruptcy And/Or A Housing Event

There are differences between the FHA Back to Work Versus Other Loan Programs where FHA Back to Work Versus Other Loan Programs was supposed to offer a reduced waiting period after bankruptcy and foreclosure.

• HUD has created the FHA Back to Work Extenuating Circumstances mortgage program back in August for those homebuyers who fell victim to the real estate, financial, banking, and credit meltdown
• The FHA Back to Work Extenuating Circumstances mortgage loan program was supposed to shorten the waiting period for those who had a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale to a one-year waiting period
• However, it does come with rules and strict guidelines in order to qualify and this program turned out to be a major mess
• Now there are better programs than the FHA Back to Work Versus Other Loan Programs
• NON-QM Loans do not require any waiting period after bankruptcy or foreclosure

Gustan Cho Associates can close NON-QM Loans in 21 days or less.

Qualification And Guidelines Of FHA Back to Work Versus Other Loan Programs

All FHA Back to Work Versus Other Loan Programs is done via manual underwrites.

• You need to be able to locate a mortgage lender that does manual underwrites
• The lender need to welcome FHA Back to Work Extenuating Circumstances mortgage loans
• This is now is very difficult to find
• This is because the FHA Back To Work Extenuating Circumstances turned out to be a total nightmare
• Nobody hardly does them anymore
• I have started processing FHA Back to Work Extenuating Circumstances mortgage loans in full force
• Gustan Cho Associates are one of the lucky ones that got them done but it was like pulling teeth
• If you want to know whether you qualify for the FHA Back to Work Versus Other Loan Programs,  I would love to be able to help you and can tell you whether you are eligible or not

However, I strongly recommend the NON-QM Loan program that Gustan Cho Associates offers than the FHA Back to Work Mortgage Program.

FHA Back to Work Versus Other Loan Programs: Eligibility Requirements And Guidelines

Here are the basic eligibility requirements for the FHA Back To Work Program:

• Be able to document and prove that the cause of the bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale was the result of a job loss or loss of 20% of total household income for at least six months prior to the homeowner filing for bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale
• A detailed letter of explanation along with supporting documents is required
• Please email a detailed letter of explanation to gcho@gustancho.com
• You are welcomed to contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response if you have any questions

Apply online at www.gustancho.com by clicking the APPLY NOW icon on the top right of this website.

Qualifying For A Mortgage With A Lender With No Lender Overlays

I will then review your mortgage application and run a credit check and review your mortgage application, letter of explanation,  and your credit report/scores with an underwriter:

• If your mortgage file seems doable by the mortgage underwriter, we then proceed to the next level
• You need to complete a one-hour HUD-approved housing counseling
• Your mortgage application cannot be started until 30 days from the completion of your HUD-approved housing counseling
• While we are waiting for the 30 days waiting period after completion of your HUD counseling, I will request mortgage documents that will be needed such as two years tax returns, 2 years W2s, 60 days bank statements, recent paycheck stubs, and other required documents
• Once we have passed the 30 days waiting period, I will issue you a pre-approval so you can start shopping for your new home.
• Once you get a home you like to purchase, sign the real estate purchase contract and submit it to me for processing and underwriting
• FHA Back to Work Extenuating Circumstances loan programs is expected to take between 30 days to 45 days to close upon the loan officer receiving the signed mortgage loan application as well as the required documents
• Please contact us at Gustan Cho Associates if you are interested in the FHA Back to Work Extenuating Circumstances mortgage loan program

Again, the FHA Back To Work Program is not a loan program that I would recommend and if you are a borrower who is adamant in trying to go for it, I would suggest a TBD Underwrite.

Related> 2015 FHA Back To Work Mortgage Guidelines

Related> FHA Back To Work Extenuating Circumstances Mortgage Program