How the FHA Back to Work Program Can Give You a Second Chance at Buying a Home


Are you looking for a second chance at buying a home? For any consumer who had to sell their home in a short sale due to foreclosure, the waiting period for buying a home with a FHA fixed-rate is typically 36 months (shorter in some instances). This all changes with the FHA Back to Work Program, shortening the wait time down to just as little as 12 months.

The FHA Back to Work Program, which began in 2013, and has been extended to 2016, has one goal in mind: providing homeowners who, due to extenuating circumstances like foreclosure, bankruptcy, or short sale, lost their home, a second chance at buying.

Do You Qualify?

According to the FHA website, in order to qualify for the FHA Back to Work Program you must document a few circumstances about yourself in relation to how you lost your home in conjunction with your financial hardship. Qualifying those terms.

  1. You must meet FHA loan requirements.
  2. You must be able to document the mortgage and credit issues that led to the financial hardship.
  3. Since your financial hardship/home loss, that you have reestablished your credit, or are making attempts to.
  4. Completed HUD-approved housing counseling.

Additionally, a mortgage lender must approve your FHA loan requirements previous to your application. Further, your reestablished credit must extend over a 12-month period and show a proven record of on-time payments of rental housing. If you are still in debt to creditors, a “capacity analysis” will be done to determine your ability to pay those creditors.

As a final note, your credit will no doubt have been compromised due to the loss of your home and your financial hardship. However, this shouldn’t stop you from being able to establish a positive payment history on all other debts.

To get started, the FHA recommends that you visit their website and request a priority back to work appointment, where a certified counselor will assess your debt, your ability to afford payments on a mortgage, and help you begin your application.

Rob Balander

Recognized as a pioneer in the FSBO market, Rob has been helping Capital Region home sellers market their own homes since 1988. To learn more about selling your Capital Region home "by owner" visit Google

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