I did a video that covers the whole program at http://youtu.be/kCb7Xku2x0k
If you would like more information or to apply for the FHA back to work program please feel free to call me at 410-412-3319
John R. Thomas
Certified Mortgage Planner - NMLS 38783
Primary Residential Mortgage, Inc
From FHA - keep in mind that many banks have overlays that state the borrower must be 2 years out of bankruptcy, even though FHA states one in some instances.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that
Â· one year of the pay-out period under the bankruptcy has elapsed
Â· the borrowerâ€™s payment performance has been satisfactory and all required
Â· payments have been made on time, and
Â· the borrower has received written permission from bankruptcy court to enter into the mortgage transaction.
TOTAL Scorecard Accept/Approve Recommendation
Lender documentation must show two years from the discharge date of a Chapter 13 bankruptcy. If the Chapter 13 bankruptcy has not been discharged for a minimum period of two years, the loan must be downgraded to a Refer and evaluated by a Direct Endorsement (DE) underwriter.
Review Rules for TOTAL are limited to:
Â· excessive qualifying ratios;
Â· a previous mortgage foreclosure within 3 years;
Â· a bankruptcy discharged within 2 years, and
Â· late mortgage payments
TOTAL Scorecard User Guide Section 2.3
Both Chapter 7 and Chapter 13 bankruptcies discharged less than 2 years from the date of the loan application require the mortgage application to be downgraded to a Refer and provided to a DE underwriter to ensure compliance with the instructions regarding bankruptcies described in HUD Handbook 4155.1. A borrower whose bankruptcy has been discharged less than 1 year generally is not eligible for FHA mortgage insurance.
If the bankruptcy was discharged at least 2 years from the date of the loan application and the risk-classification from TOTAL is an Accept, no further documentation regarding the bankruptcy is required.
Feel free to call me on 202 573-6035 if you have any additional questions.
Senior Mortgage Loan Officer
Fairway Independent Mortgage Corporation
cell 202 573-6035
Sr. Mortgage Banker
NMLS # 659743
From my understanding it was three years coupled with your credit score. if you need a Loan Officer to assist you with the quidelines let me know or visit the site for some.