It’s important to understand that this program isn’t a cure-all. It is targeted towards former homeowners who had a temporary income loss that led to foreclosure or other adverse action.

Basics of the FHA “Back to Work” Mortgage

The “Back to Work” mortgage requires documentation to prove the cause of the income loss. The income loss must be involuntary; qualifying situations include layoff, business closure, cut in pay, and job elimination through no fault of the employee. The income loss must have been at least 20% of the household income, and have lasted for at least six months.

You must also be able to document that your income has recovered since the event.

Next, the lender will review “before and after” credit history. If your credit was good before the income loss, but declined afterwards, you could be a candidate for the program – as long as you have re-established your good credit. Your most recent 12 months of credit history must show on-time payments across the board.

Applicants will be required to successfully complete housing counseling through a HUD-approved counseling agency. Counseling can be completed in person, or by telephone, or online.

Additionally, you will need to meet standard FHA mortgage criteria in regards to down payment requirements, credit score requirements and debt-to-income ratios.

The “Back to Work” program speeds up mortgage eligibility for prior homeowners who defaulted due to a temporary income loss. However, it does not simplify the mortgage underwriting process. Instead, it adds these extra conditions in order to make an exception to the usual waiting periods.

Professional Guidance for Columbus Home Buyers

Getting the right mortgage for your situation is important! We can refer you to trustworthy mortgage professionals who will provide sound guidance and explain your options.

Buying a Columbus home always begins with good information. Start by downloading our FREE e-book  for expert home buying tips and strategies!

As your Exclusive Buyer’s Broker, we serve your best interests at all times. Unlike most real estate agents who represent the home seller, we represent you, the home buyer. Understanding this critical distinction could literally save you thousands of dollars!

Contact us for help with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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