Want a Loan from Back To Work Mortgage Lenders? Get HUD Counseling First

Now that the FHA has a loan product to serve those who have been through a negative economic event it is important that you find out what the requirements are to qualify for the said loan. Loss of income, employment or both is what has been termed as an economic event. However, it needs to have reduced the income of the borrower’s household by at least twenty percent for more than 6 months. Back to work mortgage lenders have received instruction not to approve any loans unless the borrower has been through housing counseling.

If you are to get approval for a back to work home loan you need to have sat through a homeownership counseling and education class. Each borrower hoping to get an approval will need to have sat with a HUD approved counselor and had an hour of one-on-one counseling. This counseling is meant to review and analyze why the economic event occurred and to also find out what steps have been taken by the borrower to overcome the event. In addition, the counselor will also want to know what measures have been put in place to ensure that a reoccurrence is unlikely.


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The counseling must be carried out by a housing counseling agency approved by HUD, or by intermediaries and sub-grantees that have been approved to do so. Finance agencies that work with state housing are also allowed to offer housing counseling. The counseling can take place online, by telephone or even via the internet, so long as HUD has approved of the method. It is also a requirement that the housing counseling session take place between 1 month and 6 months before the loan is applied for.

The borrower will need to provide the back to work mortgage lenders that he/she approaches with the certificate of participation that he/she has received from the HUD counseling agency. Unfortunately if this certificate is not submitted along with the other loan application forms, the borrower will not get the financing.

This loan is a great opportunity for those who have gone through bankruptcy – both chapters 7 and 13 - forbearance, pre-foreclosure, deed-in-lieu, foreclosure and loan modification- to get a fresh start. In fact, the long waiting periods before one could get a mortgage (2 years for bankruptcy and 3 years for foreclosure, deed-in-lieu and short sale) have been completely waived. Now if you can show proof that for the last 12 months you have been in economic recovery, gone through the necessary counseling and met your financial obligations, you can get a home loan easily and start on the path of becoming a home owner again.

Why you should consider Back to Work mortgage lenders

 Recovering from a home crisis? Switch lenders for the “Back to Work” home loan

The housing market crash of 2008 definitely left its mark, as millions of families are still financially recovering. This past August, the Federal Housing Administration (FHA) launched the Back to Work home loan, giving these folks hope and a chance to financially reestablish. However, not all mortgage lenders have jumped on the FHA’s train, leaving many families behind. If you’re stuck in the dust, here’s why you should consider “Back to Work” mortgage lenders.

“Am I eligible?”
According to Mortgagee Letter 2013-26, a family experiencing deed-in-lieu, prior foreclosure, bankruptcy, prior short sales or forbearance agreements is eligible to apply for this program. The family has to qualify for the program by demonstrating recovery from their financial crisis. The Federal Housing Administration insures mortgage loans in all territories of the US, in all 50 states, as well as in the District of Columbia – you are sure to find one close to your place.



“How will the program help me?”
The program aims to help families that are trying to gain financial steadiness to qualify for a new mortgage program without long waiting periods – just 12 months after home loss. After you’re accepted into the Back to Work program, you need not have to incur a premium on your interest rate nor extra fees at closing. Families have to meet with a housing counselor, who will advise on buying a home, credit issues, reverse mortgages and foreclosure avoidance.

“Will the program help my credit score?”
After unfortunate financial events, some families face a credit drop of up to 250 points. Although this can be disheartening, however, re-entering the real estate market and applying for the loan is worth it. Once you are in the program and making on-time monthly payments, your credit score will gain a boost. Also, a housing counselor can offer credit-boosting advice.

Extenuating circumstances, one-time occurring events that are beyond a borrower’s control, results in a sudden and prolonged significant fall in income or a catastrophic surge in financial obligations. Financial crises are not always your fault and you deserve a way out. If your family has begun financial recovery, consider how “Back to Work” mortgage lenders can help.