- Kentucky First-time Home Buyer Programs
- Kentucky General Mortgage Guide for Underwriting Approval
- 4 Things you need to know
- Credit Scores Needed for a Kentucky Mortgage Loan
- KENTUCKY FHA MORTGAGE LENDER GUIDELINES
- Zero Down Home Loans available in Kentucky
- Kentucky USDA Rural Development Housing Zero Down
- Kentucky VA Home Loans Mortgage Guidelines
- KHC Loan Programs Down Payment Assistance for 2017
- (HARP) Home Affordable Refinance Program HARP 2.0
- Common Questions from First-time Home-buyers in Kentucky
- Documents Needed for Mortgage Loan Approval in Kentucky
- Glossary /Mortgage Terms
- Mortgage Calculator for Kentucky FHA, VA, USDA, KHC Mortgage Loans
- Locking in your Kentucky Mortgage Loan Rate
- Kentucky FHA/VA Approved Condos
- Do's & Dont's before closing:
- Legal Disclaimers
Wednesday, January 1, 2014
Do you qualify for the Back to Work Program in Kentucky for home buyers with previous short sale or foreclosure less than 2 years?
What is Back to Work?
FHA is continuing its commitment to fully evaluate borrowers who have experienced periods of financial difficulty due to extenuating circumstances.
Many borrowers experienced periods of recession related financial difficulty and/or credit impairment resulting from unemployment or a severe reduction in income. FHA recognizes the hardships faced by these borrowers, and that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.
For Purchase transactions with case numbers assigned on or after August 15, 2013
The alternative guidance in Mortgagee Letter 2013-26 is effective for purchase applications with
case numbers assigned on or after August 15, 2013 through September 30, 2016.
All delinquent accounts and indications of derogatory credit, including collections and judgments,
bankruptcies, foreclosures, deeds-in-lieu, short sales, and other credit problems must be analyzed.
The lender must review the credit report and determine whether derogatory credit was the result of
• The borrower exhibited Satisfactory Credit prior to the Economic Event Onset;
• The borrower’s derogatory credit occurred after the Economic Event Onset, and
• The borrower has re-established Satisfactory Credit for a minimum of twelve (12) months.
Foreclosure, Short Sale, Deed in Lieu, Bankruptcy
In all cases, the lender must verify that the derogatory credit was the result of an Economic Event
and document that a minimum of 12 months has elapsed since the date of the:
• deed in lieu
• short sale
• discharge of Chapter 7 bankruptcy
Chapter 13 Bankruptcy
The lender must verify and document that
• the Chapter 13 bankruptcy was discharged prior to loan application and all required bankruptcy
payments were made
• a minimum of 12 months of the pay-out period under the bankruptcy has elapsed and all required
bankruptcy payments were made on time, and
• the bankruptcy was the result of an Economic Event
If the bankruptcy was not discharged prior to loan application, the borrower must receive written
permission from the
Bankruptcy Court to enter into the mortgage transaction.
HUD announced several key terms that must be reviewed in accordance with this program.
If you feel that you might qualify or have any questions regarding this new FHA Back to Work mortgage program, then please give us a call.