Important Back to Work Definitions
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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