New FHA Program Puts Ex-Home Owners Back on Market Sooner

April 13, 2014

HUD Back to Work ProgramThere’s exciting news for Chicago homeowners who lost their homes during the economic recession and have been building their finances back up again. The FHA’s new Back to Work Program is allowing buyers who would normally have had to wait 36 months or longer to secure a government loan to qualify for financial assistance in as little as 12 months following a short sale, foreclosure or deed in lieu of foreclosure.

To qualify for the Back to Work Program, potential buyers will need to document the financial problem that prompted their short sale or foreclosure (such as showing a significant loss in income for at least six consecutive months prior to losing their home). Buyers will also have to show that they have taken steps to re-establish their income and credit (either by having a credit score of at least 640 or having undergone a HUD-approved counseling agency program on home ownership or residential mortgage loans). The program does not consider divorce, previous loan modifications, or adjustable-rate loan recasting as qualifying reasons for participation in the program.

This program, which runs through September 30, 2016, is focused on government fund borrowers. “Boomerang” homebuyers, as they are called, for conventional bank-backed loans will still need to wait up to the normal seven years before they can buy again. Of course some lenders will be able to make exceptions for those with sufficient documentation of the circumstances outside of their control surrounding their short sale or foreclosure, but if you are one of the borrowers who can take advantage of the FHA’s Back to Work Program, get all of the information today!

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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