Do You Qualify For The New Back To Work Lending Program?

With the new back to work lending program, lenders are all set and ready to help people who have gone through an adverse economic event. If this describes you, then there is no reason why you should miss out on this program. This HUD mortgage plan is aimed at giving you a new start if you have recently recovered from an economic downturn. In order to qualify you will need to prove that the economic event was caused by events that were not in your control. In addition you will need to show that the event reduced your household income by twenty percent or more for as long as a six month period. The FHA understands that sometimes life happens and you can’t do much about it.

If you have suffered foreclosure, pre-foreclosure, bankruptcy (either chapters 13 or 7), needed a loan modification or deed-in-lieu or forbearance, then you are a prime candidate for these loans. After you have documented your loss of income satisfactorily, your credit history will pretty much be forgiven and you can borrow money to buy your family a home.


One of the things to note, to the FHA’s credit, is that the loans are written with regular FHA standards. In fact you can get your new home with just a 3.5 percent down payment. The interest rates have also not been inflated but are the same as those of other FHA products. This has all been set up like that to ensure that the borrowers are not in any way penalized for an event that they could not have done anything about. Of note is that not all lenders are offering the back to work loan. Only specific ones have signed up with the FHA to provide this product.

In order to get approval with the new back to work lending program you will also be required to attend an hour of housing counseling or home ownership education or both. If you do not go through this counseling your loan will be denied. It is important that you have all of your documentation well put together and make sure that every requirement outlined by the FHA has been met. It is in your best interest to find an underwriter who is both confident that you can repay the loan and also one who is confident with your documentation.

With this loan you will be well on your way to getting your life back to the place it was before you suffered the economic event. We all understand how important it is to own a home. It is indeed a landmark event in the life of any person. Don’t let anything stop you from owning your dream home. Just get your documentation together, attend housing counseling and speak to a lender near you.