Relive Your Dream with the New Back to Work Lending Program

In the tough economic times of today, it is often very difficult for people to even meet the daily necessities of life. For many Americans, the housing market crash in 2008 came as a final blow, and many families lost their homes. Thousands are still struggling to cope with the aftermath and are struggling to get back on the journey to home ownership.

The New back to work lending program is a ray of hope for affected families to reenter the market through a new mortgage loan. Families affected by adverse economic events such as the pre-foreclosure sale of a house, a short sale, bankruptcy or forbearance agreements, can now get back to home ownership.

What is the back to work lending program?
Designed to give another fair chance at a successful mortgage to families affected by an economic downturn, this program was launched in August 2012. The Federal Housing Administration (FHA) insures mortgage loans in all 50 states, including the District of Columbia.

How does back to work lending help?
Since the program waives the 3-year waiting period, families can apply for a new mortgage after just one year of losing their home. Before applying, families have to undergo counseling for at least one hour by a housing counselor. Issues such as credit issues, home investment, reverse mortgages and foreclosure avoidance are discussed at length. This is a mandatory session and must be completed at least 30 days prior but no more than 6 months before they apply for the new loan.

Although, the mortgage rates are almost the same as FHA loans, by being a part of the new back to work lending program, borrowers may put down just 3.5% on a new mortgage. Also, they don’t have to bear a premium on their interest rate or additional fees at closing.

Eligibility conditions:

• Borrowers must work with a home mortgage lender who offers the back to work program.
• Borrowers must have been through an adverse economic event.
• Borrowers must be able to reflect their ability and disposition to make regular monthly payments.
• Borrowers must attend a counseling session on home ownership.
• In the last 12 months prior to applying for the new home mortgage loan, borrowers must reflect a fair credit history. There must not be any delinquency in the past one year of applying.

If home owners can prove their past economic hardships, their full recovery and complete the housing counseling, a back to work loan is just right to help them. Borrowers aspiring to own a home again must find a FHA-approved lender to get started. It will only be a matter of time before they move into their new home.