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FHA Mortgage Applicants with Recent Foreclosures Offered a Pass

FHA

The Federal Housing Administration (FHA) has instituted a new program. Its name is “Back-To-Work-Extenuating Circumstances” to assist potential borrowers who faced financial hardship during the recession.
This program, which began August 15th, 2013 provides a second chance for mortgage applicants. For those who have experienced financial hardship such as unemployment. Or, a severe reduction in income beyond the borrower’s control. The purpose of this program is to assist borrowers with a recent history of foreclosure, judgment, short sale, bankruptcy, loan modification, or deed-in-lieu. It does this by acknowledging that their credit history may not fully reflect their ability or propensity to repay a mortgage. Prospective borrowers that have experienced an economic event and can document that the event was out of their control; that they have recovered, and that they have completed housing counseling. With all of these, they can apply for an FHA-insured mortgage that will allow up to 96.50% financing.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020. Or, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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