There are millions of homeowners that have experienced a short sale of their home in the past. Naturally many of them would like the opportunity to own their own home again but feel that this is impossible due to the fact that they previously lost a home due to financial hardship. For these people the new FHA “Back to Work” program just might be the solution.
What makes this program so special? Well, for one thing, under certain circumstances borrowers that were in default of their home loan at the time of the short sale may still qualify for a new FHA insured home loan. In such cases the borrower(s) will need to provide proof that the reason for the default was in fact related to loss of employment or other conditions beyond their control at that time.
Also quite unique to the program is the fact that the borrower’s other debts at the time of the short sale are also taken into consideration. This allows new applicants to show the reasons for their previous financial hardships due to other financial obligations and not based solely on their mortgage payment at that time. Obviously this makes it much easier to explain why the original short sale was unavoidable. It’s important for lenders to understand that the homeowner had no choice but to sell their home on a short sale due to circumstances that were truly beyond their control and not due to negligence or lack of effort on their part.
To qualify for a new FHA insured home loan the applicant will be required to complete a series of house counseling classes before attempting to secure financing for a new home. Keep in mind that as with any loan application each applicant is unique and will be handled on a case by case basis so it’s important to discuss the best options with a lender to determine your next step.
Regardless of the fact that you have experienced a short sale of your home in the past, the new “Back to Work” program may provide you with a 2nd chance that no other program offers and allow you to again enjoy the benefits and pride of home ownership. If you would like more details you can visit the official FHA website for more information.