FHA Program Gives Distressed Homeowners 2nd Chance

FHA Program Gives Distressed Homeowners 2nd Chance

Typically, home owners who lost their homes to a short sale or foreclosure are required to wait about 36 months before being able to purchase a primary residence again with a Federal Housing Administration loan.

But the FHA’s Back to Work Program is allowing buyers to purchase a primary home much sooner — possibly as soon as 12 months following a short sale, foreclosure, or deed in lieu of foreclosure. The program runs through Sept. 30, 2016. To qualify for the program, potential buyers will need to document the financial problem that prompted their short sale or foreclosure, such as showing a 20 percent loss in income for at least six consecutive months prior to losing the home. Read More.