If you are shopping for a back to work mortgage loan, you will need to show your lender that you are in economic recovery. Having been through an economic event such as foreclosure, deed-in-lieu, short sale or bankruptcy, there is certain proof that you will need to provide in order to qualify for a loan. This should not cause you any alarm, however. Just read on and find out what the requirements are.
To begin with you will need to prove that the credit impairments attached to your Social Security Number were because of an economic event that was beyond your control. In addition, you will need to prove that your household income was severely affected. The event could be that you lost your job or other source of income. You will also need to show that you have recovered fully financially from the adverse economic event. Finally you will need to go through HUD housing counseling so as to qualify to move into the next step of the process.
FHA back to work program by 1stalliancelendingllc
In order to prove that you are in full economic recovery you will need to show that your credit history is on the up and up. That means that you are well able to pay your housing costs on time and that you are not making your payments in installments. If you have revolving accounts you will also need to show that you are paying those on time. With 12 months of satisfactory payments, you will have passed one stage of the qualification process for the back to work mortgage loan. If you have a loan modification it is important to show that you are making your payments in a timely fashion and in full.
The other requirement that must be met is one that qualifies your situation to be termed as an economic event. That means that you will need to show that the reduction of household income was 20% or more than that. This loss must have been experienced for at least 6 months in order for you to qualify for a back to work home mortgage. In order for these requirements to be met it is important that you provide the necessary documentation for purposes of underwriting as well as loan approval.
The documents you will be required to produce will include confirmation that your income was reduced by at least 20% for at least six months. You will also need to show proof of loss of income or employment. Proof of this will be in your W2s as well as your tax returns. You may also be required to produce documents showing that you closed your business or an employment termination letter. Be sure to have all your documentation in place so that you can present them as needed for the success of your loan application.
To begin with you will need to prove that the credit impairments attached to your Social Security Number were because of an economic event that was beyond your control. In addition, you will need to prove that your household income was severely affected. The event could be that you lost your job or other source of income. You will also need to show that you have recovered fully financially from the adverse economic event. Finally you will need to go through HUD housing counseling so as to qualify to move into the next step of the process.
FHA back to work program by 1stalliancelendingllc
In order to prove that you are in full economic recovery you will need to show that your credit history is on the up and up. That means that you are well able to pay your housing costs on time and that you are not making your payments in installments. If you have revolving accounts you will also need to show that you are paying those on time. With 12 months of satisfactory payments, you will have passed one stage of the qualification process for the back to work mortgage loan. If you have a loan modification it is important to show that you are making your payments in a timely fashion and in full.
The other requirement that must be met is one that qualifies your situation to be termed as an economic event. That means that you will need to show that the reduction of household income was 20% or more than that. This loss must have been experienced for at least 6 months in order for you to qualify for a back to work home mortgage. In order for these requirements to be met it is important that you provide the necessary documentation for purposes of underwriting as well as loan approval.
The documents you will be required to produce will include confirmation that your income was reduced by at least 20% for at least six months. You will also need to show proof of loss of income or employment. Proof of this will be in your W2s as well as your tax returns. You may also be required to produce documents showing that you closed your business or an employment termination letter. Be sure to have all your documentation in place so that you can present them as needed for the success of your loan application.
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