Health & Fitness
Got SCARY credit? New FHA program helps borrowers with bad credit get back into the market.
The housing crisis hit a lot of Americans hard, and getting back into financial shape can be a long, difficult process. But the FHA’s new Back to Work – Extenuating Circumstances Program is giving more people the ability to buy again through an FHA loan.
The reasoning behind Back to Work is that many people experienced financial problems that weren’t their fault. Some lost their homes because they got laid off during the recession. Making these people wait three years to get back into the market isn’t fair, so the FHA is taking steps to help. After all, the more people the FHA can get back into the market, the greater the demand for homes and the faster prices will recover—which is good for all Americans!
Here’s how the program works:
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- You have to prove that the foreclosure, short sale, etc. was caused by loss of income or employment that was beyond your control. The income loss must have been 20% or more for at least six months.
- You have to prove that you’re fully recovered, meaning you’re employed and able to afford loan payments again.
- You have to prove that your credit was satisfactory before the economic hardship and that you’ve re-established satisfactory credit over the past 12 months.
- You have to complete one-on-one housing counseling for 1-6 months before applying.
- You must have a minimum of a 640 credit score
Once you’ve met these requirements, you can qualify for an FHA loan with just 3.5% down. To see if you qualify for the FHA’s Back to Work program, please feel free to give me a call today.
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Regards,
Mark S. Fisher
Licensed Mortgage Originator
NMLS ID#478240
Download my Mobile Mortgage Calculator App: http://nycmortgage.mortgagemapp.com/mobile
UNITED NORTHERN MORTGAGE BANKERS, LTD.
2105 Williamsbridge Road 2nd Floor
Bronx, NY 10461
Office: (718) 246-5100
Cell: (347) 242-1206
Fax: (516) 977-4557