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Your mortgage loan experts

By Russell Smith | Mortgage Broker
or Lender in Whiteville, NC

FHA Back to Work Program

FHA Back To Work Program:  FHA loan for borrowers with extenuating recent circumstances

 Purpose of this program:  To provide an opportunity to purchase a home to buyers who have experienced an economic event that resulted in a severe reduction in income due to a job loss or other circumstances resulting in reduce household income.  Extenuating circumstances must be allowed per the FHA Mortgagee letter 2013-26.


Highlight of guidelines:  More detailed guidelines are in the FHA                 Mortgagee Letter 2013-26

·         640 minimum credit score

·         Approve / Eligible from TOTAL

·         Must have 3rd party documentation proving the extenuating circumstance

·         Must complete housing counseling

·         Must demonstrate full recovery from the event with at least 12 months of re-established good credit

·         An “Economic Loss” is any occurrence beyond the borrower’s control that results in loss of employment, loss of income, or a combination of both, which causes a reduction in the borrower’s household income of 20% or more for a period of at least 6 months

·         Applies to previous short sales, foreclosures, and chapter 7 or 13 bankruptcy

 Great program to help buyers who have gone through the misfortune of lossing a job.  I hope this helps buyers

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