HUD announced several key terms that must be reviewed in accordance with this program.
â€¢Economic Event: an occurrence beyond the borrowers control that resulted in a Loss of Employment, Loss of Income or a combination of both which resulted in a loss of Household Income of 20% or more for a period of six or more months.
â€¢Onset of Economic Event: the month of the start of or loss of income.
â€¢Recovery from an Economic Event: the re-establishment of acceptable or satisfactory credit. Satisfactory Credit equates to no derogatory credit for any mortgaged or leased property in the 12 months preceding the mortgage application. This also includes any installment or revolving debt for the same period.
â€¢Borrower: â€œBorrowerâ€ includes all parties including primary and/or co-borrower as listed on the loan application.
â€¢Borrower Household Income: the income of all parties on the application or Household Members as listed from the previous Economic Event and derogatory credit.
â€¢Housing Counseling: Counseling from a HUD-approved housing counseling agency related to home ownership and meets acceptable requirements.
If you feel that you might qualify or have any questions regarding this new FHA Back to Work mortgage program, then please give us a call.
Joel Lobb (NMLS#57916)
Senior Loan Officer
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Keeping it real......getting financed immediately after a short sale is highly unlikely, even with a large down payment. We just don't see this happening. Getting financed after only a year is highly unusual since it generally takes 2-3 years at best before lenders will give you serious consideration.
You do have other options including: owner financing, lease options, renting. I know this isn't what you want to hear but it's real...
Once you short sale, foreclose, or have a substantial delinquency you are going to have a REALLY hard time getting financing for 24 months from the date it goes through. If you are presently behind on your mortgage it is probably not feasible to buy right now in your name.
If your family qualifies for an investment property loan, they could purchase a home here and rent it to you until you can buy it from them. This is completely legal, they are buying the home for the purposes of renting it, and they can certainly rent it to you! I help parents do this for their college students all the time, its a great financial move for them AND you do not have to feel like a renter!
I have a great mortgage lender that you can bounce ideas off of AND I love to be creative to help people reach their goals. You can reach me at 919-278-7700 or via the email link.
Help from a relative is nice but donâ€™t call it something it isnâ€™t. A loan is a loan and a gift is a gift, if you call a loan a gift it is fraud and all involved can get hurt. Good luck,
NMLS # 6395
Financing Kentucky One Home at a Time
You could consider giving yourself breathing space by renting for a couple years first. This will give you a chance to get acclimated to the various towns and subdivisions. Another option is allowing a family member to purchase a small place that you can rent back from them with the intention of eventually purchasing.
Regrettably, the short sale may harm your credit, and some employers are looking at this before and during the employment process. IMO it might be better to rent out your CA property (even for a small loss) until you are firmly on your feet here in NC.
I'm not a mortgage lender or expert, but I'm assuming that unless you pay the deficiency of your CA home out of that 50% you mention, the answer is no for 2 years.
Most lenders will not lend until 2 years after a short sale. However, maybe you can check with some Mortgage Brokers to see if any might be able to do something to assist you.