FHA "Back to Work" Program shortens waiting period for qualified borrowers

The FHA’s Back to Work - Extenuating Circumstances Program is the FHA’s “second chance” for mortgage applicants who lost their homes as a result of a direct hardship and the traditional two or three-year waiting periods will be waived for those who qualify.  

Homeowners who experienced a qualified "economic event" (short sale, deed-in-lieu, foreclosure, loan modification or forbearance agreement of Chapter 7 or Chapter 13 bankruptcy)  but can demonstrate a full financial recovery from this event and meet other criteria may be able to receive an FHA loan in as soon as one year after the event.  There are also other stipulations regarding a 20% or more decline in household income for at least 6 months that coincided with the event and an agreement to complete housing counseling at least 30 days prior to loan application.  

Read the complete HUD Mortgagee Letter here: 

portal.hud.gov/huddoc/13-26ml.pdf