FHA has come out with a new mortgage program, designed to afford people who have taken a BIG hit to their credit, to be able to buy a new house. It’s called the Back to Work program. And, some local lenders are now making it available. Here’s how it works…
If you had a short sale, deed-in-lieu, foreclosure, or bankruptcy that was caused by a reduction in household income of 20% or more, that persisted for at least six months and was due to a situation beyond the buyer’s control, then you may be eligible for the Right to Work mortgage program.
To be eligible, one must meet the following conditions:
1) Demonstrate good credit before and after the economic event.
2) Be at least 12 months beyond bankruptcy discharge or deed transfer (short sale, deed-in-lieu or foreclosure).
3) Have no late payments, judgments or collections during the past 12 months.
4) Have a 3.5% cash down payment if your credit score is 600 or better, or a 10% down payment if the score is between 580-599. (If you do not have a credit score, then a 20% cash down payment will be required.)
5) Have proof that your rent or mortgage payments did not go 30 days late during the past year.
The Right To Work program should help some people to more quickly get beyond past burdens and to be home owners. If you have questions, be sure to ask me.