Understanting the FHA back to work program that allows a buyer to purchase again after 1 year of foreclosure, short-sale or bankruptcy. Requirements: You must also show that your household income declined by 20% or more for a period of at least 6 months, which coincided with the above economic event. In order to document a 20% loss of household income, you must present federal tax returns or W-2s, or a written Verification of Employment evidencing prior income. For loss of income based on seasonal or part-time employment, two years of seasonal or part-time employment in the same field must be verified and documented as well. Income after the onset of the economic event, which should represent a loss of at least 20% for at least six months, should be verified according to standard FHA guidelines. This may include W-2s, pay stubs, unemployment income receipts, or other. The 20 percent loss of income eligibility condition applies to everyone in the household. If one member of the household lost income as the result of a job less but the household income did not fall by 20 percent or more for a period of at least months, the borrower will not be FHA Ba Extenuating Circumstances-eligible. The borrower must have done a full recovery (credit and income wise) and most take a counseling class approved by HUD.
Posted on: Wed, 12 Nov 2014 17:13:49 +0000
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