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FHA Back to Work ProgramA GUIDE FOR REALTORS®

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FHA Back to Work Program

• FHA is continuing its commitment to fully evaluate buyers who have experienced periods of financial difficulty due to extenuating circumstances.

• Many buyers experienced unemployment or other severe reductions in income and ultimately lost their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure.

• FHA recognizes the hardships faced by these buyers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.

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Economic Event Defined

• A decrease of income by 20% or more

• Decreased income must have been for at least six months

• Decrease in income must have resulted in serious derogatory credit such as a short sale, foreclosure, or bankruptcy

Note this program is available from August 15, 2013 through September 30, 2016.

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What FHA Programs Apply?

• Available only for purchase loans

• Not available for refinance loans

• Not available for FHA reverse mortgages

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What are the Qualifying Criteria?

A buyer that experienced an Economic Event may be eligible if:

1. The loss of employment or income was due to an extenuating circumstance beyond his or her control and can be documented

2. A satisfactory credit history has been restored for one year

3. Housing counseling has been completed

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FHA Back to Work Process

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• Larger pool of buyers for listings• More potential offers• Allows more buyers to get approved • Allows seller to pay up to 6% of closing costs

REALTOR® Benefits

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Thank You!

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Over 1000 changes have been made to FHA programs Over 1000 changes have been made to FHA programs over the last 5 years. We keep ourselves informed to better over the last 5 years. We keep ourselves informed to better serve home buyers and REALTORS®.serve home buyers and REALTORS®.

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