Borrowers who lost their homes as a result of a direct hardship may be able to get an FHA loan in as little as one year!
If you lost your home do to a hardship, this program might be able to help you become a homeowner in the great Phoenix metro area quicker then you might of thought. The FHA’s Back to Work – Extenuating Circumstances Program is the FHA’s “second chance” for mortgage applicants who’ve experienced financial hardship from unemployment or from a severe reduction in income.
The mortgage rates for the Back To Work program are the same as for any other FHA program. No premium rate is imposed, and there are no additional fees. Here are the basic requirements for eligibility:
- Your must have experienced an “economic event” like a short sale, deed-in-lieu, foreclosure, Chapter 7 or Chapter 13 bankruptcy, loan modification or forbearance agreement
- You must demonstrate a full recovery from the event. You must also show that your household income declined by 20% or more for a period of at least 6 months, which coincided with the economic event.
- You must agree to complete housing counseling at least 30 days prior to loan application.
Borrowers who lost their homes as a result of a direct hardship might be able to receive an FHA loan in as soon as one year. The traditional two or three-year waiting periods will be waived for those who qualify. We can help you with Glendale Arizona Real Estate
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