About The FHA Back To Work Program

The Federal Housing Administration/Department of Housing "HUD" created the federal program called “Back to Work – Extenuating Circumstances”, if you have had a foreclosure, short sale, deed-in-lieu of foreclosure, or have declared bankruptcy you may qualify for a new home loan if you are back to work and can document the extenuating circumstances.

Basic Qualification Standards:

FHA will consider you for eligibility if you had a financial hardship in the past but can now document the following circumstances about yourself:

1.You meet all FHA loan requirements

2.You can document the mortgage or credit problems that resulted from a financial hardship

3.You have re-established an acceptable credit history

4.You have successfully completed HUD-approved housing counseling

Lenders are required to determine if you meet the FHA loan requirements before you can apply for a FHA loan under the Back to Work program. You will need to often provide documentation to demonstrate how the financial hardship was something beyond your control that reduced your income or caused you to lose employment. If your household income dropped by 20% or more for at least six months, it may count for this type of financial hardship.

Re-established credit means that you must have a 12 month record of on-time rental housing payments with no delinquencies, and not have been 30 days late on more than one non-housing loan payment. If you still have any open collection or judgment accounts, then a “capacity analysis” will be done to see if you can repay those creditors thus meeting any underwriting requirements for the program.

Getting Started

To start an application with a FHA-lender you must first take a “Pre-Purchase Counseling” course with a HUD approved housing counseling agency 30 days before you start the application. A certified counselor will assess your debt, ability to afford the mortgage, features of the mortgage, explain mortgage insurance and the loan application process. The Mortgage Education Foundation is a fully accredited HUD-approved housing counseling agency which can help you make sure that you have done everything you need to do to access the “Back to Work–Extenuating Circumstances” program. You will need to complete your counseling at least 30 days before you apply for a new FHA mortgage. Your certificate is valid for 6 months.

FHA Back To Work Program Counseling Services

Our Mission is to provide the communities we serve homeownership education and professional counseling to purchase a home, refinance an existing home, obtain a HUD Insured Reverse (HECM) Mortgage or to prevent foreclosure.  We are a HUD Approved Housing Agency serving people since 1994.