Good News for Many Hopeful 2014 Home Buyers: FHA's "Back to Work - Extenuating Circumstances" Program
Good News for Many Hopeful 2014 Home Buyers:
FHA's "Back to Work - Extenuating
FHA's "Back to Work - Extenuating
Many U.S. Homeowners became the unfortunate participants in the recent real estate housing crisis. A large number of them dream of becoming Homeowners once again. These hopeful potential Buyers are termed "Boomerang Buyers". If you read much about real estate or the economy over the past few years, you saw the term everywhere.
Now I read that Trulia's Chief Economist, Jed Kolko, predicted in a recent news article that the year of 2014 will be "the year of the repeat home buyer". If true, that will most definitely have to include many of the "Boomerang Buyers".
This last August 2013, FHA (Federal Housing Administration) made a significant mortgage rule change that will help many "Boomerang Buyers" return to the housing marketplace sooner than they thought. The new changes will enable many to successfully apply for a new FHA loan just one year after suffering their Foreclosure/other financial tragedy, when caused by major income or employment hardship.
This new program is entitled: FHA "Back to Work - Extenuating Circumstances" Program.
This Program and its new changes, effective for FHA Case Numbers assigned on or after August 15, 2013, touches Borrowers with a recent history of:
- Short sale
- Loan Modification
- Proof that a major economic occurrence (i.e. job loss or severe reduction in income, at minimum, 20% for a minimum of 6 months) was the major contributing factor for the loss of their home. Documentation of facts must be provided, even when a non-occupying Borrower
- Borrowers need to prove that their income has fully recovered
- Borrowers need to prove that their current Credit Scores are satisfactory *
- Potential Borrowers must attend and complete 1-on-1 Home Buyer counseling 30 days prior to their Mortgage Application being made. The counseling must be conducted through an approved HUD Counseling Agency. The counseling is intended to help potential Borrowers prevent a recurrence of financial troubles
- Borrowers must meet all other FHA eligibility requirements
- A delinquency-free rental payment history
- No more than one 30-day Late Payment due to any other creditor
- No collection accounts or court records reported on their current Credit Report (other than medical and/or identity theft)
Old lending rules dictated that Borrowers having Foreclosures, Short Sales, etc., had to wait from 2 to 7 years to consider financing a new home. The FHA "Back to Work - Extenuating Circumstances" Program reduces that wait to one (1) year, for qualified and complying Borrowers.
There is no premium Interest Rate charged for this new FHA program. Additional costs or fees are not charged for its use at the time of Closing. The FHA "Back to Work - Extenuating Circumstances" Program follows standard FHA Mortgage guidelines. Note: First-Time Home Buyers may use this program too!
Good News for Many Hopeful 2014 Home Buyers: FHA's "Back to Work - Extenuating Circumstances" Program ... If you're interested in finding out whether this new FHA "Back to Work - Extenuating Circumstances" Program might assist you in the financing of a new Chicagoland home, contact me. I'll be happy to answer all your questions, assist you through your financing, and in becoming successful home owners once again.
* I can be successfully found via any of the following:
Cell or Text: 708.921.6331
Click HERE for a FREE Mortgage Consultation!
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Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.
Gene Mundt, Mortgage Lender can be contacted at:
815.524.2280 or 708.921.6331 ...
or via his email: firstname.lastname@example.org.