foreclosure waiting period.
Effective August 15, 2013, FHA has agreed to waive the current 3
year wait period under a new program called “Back-To-Work-Extenuating Circumstances”
What is the FHA Back- To-Work-Extenuating Circumstances program?
The FHA Back To Work - Extenuating Circumstances program is the FHA's "second chance" for mortgage applicants who have experienced financial hardship as a result of unemployment or severe reduction in income. Borrowers with a recent history of bankruptcy, foreclosure, judgment, short sale, loan modification or deed-in-lieu can now apply and get FHA approved for an FHA-insured mortgage. It will still allow up to 96.50% financing! This should certainly open the door for many borrowers who lost their jobs and their homes as a result of the recession.
The FHA "Back To Work" Program Is Official On August 15, 2013,
the Federal Housing Administration moved to relax its guidelines for borrowers who "experienced periods of financial difficulty due to extenuating circumstances".
Dubbed the "Back-To-Work-Extenuating Circumstances Program", the FHA removed the familiar waiting periods that typically followed a derogatory credit event.
If you have experienced any of the following financial difficulties, you may be program-eligible:
•Chapter 7 bankruptcy
•Chapter 13 bankruptcy
The FHA realizes that, sometimes, credit events may be beyond
clients’ control, and that credit histories don't always reflect person's true ability or willingness to pay on a mortgage.
Please contact me for more information about this program and for a list of approved lenders, not all lenders are approved for this program.
Bev Dudley, Realtor
Fleur de Lis Realty, Miramar Beach Florida