FHA back to work program guidelines

Man holding a back to work signFHA has not renewed this program and is currently unavailable. Call your Congressman and Senator to reinstate the FHA Back to Work program.

The FHA Back to Work Program enables a home buyer to purchase a home just 12 months after a foreclosure, short sale or a deed in lieu of foreclosure. The FHA program was announced in 2013, and was extended through Sept. 30, 2016. The Back to Work Program gives homebuyers a second chance at homeownership. To qualify for the program, mortgage borrowers must meet the standard FHA loan requirements, document prior financial hardship, re-establish an on time credit history, and complete a HUD approved homeowner counseling program.

Limitations to the program may include previous loan modifications, adjustable-rate loan recasting, inability to rent a previous income property, and divorce

On August 15, 2013, the Federal Housing Administration (FHA) loosed its guidelines for borrowers who "experienced periods of financial difficulty due to extenuating circumstances".

The following financial difficulties may be program-eligible under the program:
Chapter 7 bankruptcy
Chapter 13 bankruptcy
Forbearance agreements
Loan modification
Short sales
Pre-foreclosure sales

The program waives the agency's three-year waiting period after experiencing a foreclosure, short sale or deed-in-lieu and waives the FHA two-year waiting period after a Chapter 7 or Chapter 13 bankruptcy.

Homebuyer/applicants must meet several minimum eligibility standards. The first requirement is that you must have experienced an "economic event" (i.e. short sale, pre-foreclosure sale, deed-in-lieu, foreclosure, Chapter 13 bankruptcy, Chapter 7 bankruptcy, loan modification, forbearance agreement). You need to show a 20% loss of income or more for at least six consecutive months leading up to the event to be eligible for the program. Supporting documentation includes pay stubs with lower year-to-date earnings when your income dropped. Unemployment compensation receipts, W-2s and/or tax returns meet the FHA requirement. You must prove a complete recovery from the economic event and you have re-established your income

You must have had a good credit history prior to the economic event and that the bad credit occurred after the start of the economic event; and, that you have re-established a perfect payment record for 12-months on major accounts and other obligations. Limited late payments on revolving accounts may be permitted.

Can first-time home buyers use the program?

Yes, first-time buyers are eligible.

Can repeat home buyer use the program?


What is the minimum credit score for the FHA Back to Work program?

There is no minimum credit score requirement for the FHA Back to Work program, although FHA lenders may establish a minimum credit score for approval.

FHA back to work program lenders

1. Are FHA loans assumable?

2. Are FHA loans good?

3. Are FHA loans only for first time home buyers?

4. Are there disadvantages of the FHA Home Loan?

5. Can a FHA loan be used for mobile home?

6. Can FHA loans have a cosigner?

7. Can I qualify for an FHA loan?

8. Can the down payment on FHA be a gift?

9. Can FHA down payment be a gift?

10. Can the lender pay my closing costs?

11. Can FHA loans be refinanced?

12. Can I buy foreclosure with FHA loan?

13. Can I get an FHA loan with bad credit?

14. Do FHA loans have points?

15. Do FHA loans require pmi?

16. Does the FHA allow seller rent back?

17. Does the FHA require cash reserves?
18. Can you remove pmi from an FHA loan?

19. Do FHA loans require pmi?

20. Do FHA loans require mortgage insurance?

21. Does FHA require collections to be paid off for a borrower to be eligible for FHA financing?

22. Does the FHA require termite inspection?

23. How do you know if a condo is FHA approved?

24. How many FHA loans can you have?

25. How much is the FHA down payment?

26. How To Stop An FHA Foreclosure

27. Is there an FHA inspection?

28. What are the benefits of an FHA mortgage?

29. What is the debt to income ratio for FHA loans?

30. What is the difference between conventional and FHA home loans?

31. What is the Federal Housing Administration?