Shortsale? Foreclosure? Bankruptcy? You may NOT have to wait 3 years or more to buy your next home under the new HUD “Back to Work” initiative announced August 15th. If you qualify for the program, you may already be able to purchase a home as an owner/occupant with an FHA loan.
Eligible borrowers would be those who experienced a “significant loss of income due to circumstances beyond the borrower’s control” which in turn triggered an “economic event” that impacted their financial status.
An “economic event” is defined as one of the following:
- Short sale
- Deed-in-lieu of foreclosure
- Chapter 7 bankruptcy
- Chapter 13 bankruptcy
- Loan modification
- Forbearance agreement
“A significant loss of household income due to…