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qualifying for fha back to work program

concerned about my 681 credit score. is this going to get in the way? i actually have a decent down payment at 16k but because of my recently shaky employment history i don't know of another program that would accept me unil i heard about fha back to work. 8 months out of work on disability after major surgery. i've been at a new job since May. by lanceolsen789644 from Crofton, Maryland. Dec 19th 2014 Reply


I would love to help you with this transaction. Please call me directly Kacey Ximines443-742-0946

Dec 19th 2014
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Ron Schwartz (RonSchwartz)
#70 ranked lender in Maryland - 56 contributions

Hi Lance,First, Happy Holidays and its good to hear you are back on your feet!Now, its true that your 681 Fico score is not the top of range. But I am certain that my colleagues will agree, a 681 is very far from bottom! In fact that score is well within tolerance for any number of Government (FHA, VA, USDA) or conventional loans.Depending on the program and your other qualifications you really shouldn't hesitate to apply for a loan. With rates as low as they are, I doubt there's much impact on rates...or I'd be more apt to state that the impact should not discourage you from buying or refinancing your home at this point.I'd be happy to review your situation with you and advise you accordingly. And we can demonstrate what, if any, difference in eligibility, rates and payments would be caused by the situation. Remember Lance...rates, payments are important. But no where near as important as knowledge, understanding and most of all...comfort with your budget for both cash to purchase a home AND payments Monthly.Thanks again for asking and Happy Holidays....Ron SchwartzEmbrace Home LoansNMLS 47148

Dec 19th 2014
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Linda Wintersteen (Linda123)
#64 ranked lender in Arizona - 1,252 contributions

OK you have over 6 months of new work history, and also you had a hardship with your sugery, so you should not have any problems, and by your fico score, it is assumable that you kept up on your payments .. also, if you do have any situations, I do have a refferral for you that can you can buy a home without documentation.. yourloanpartnerforlife@live.com

Dec 20th 2014
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,228 contributions

With that much in savings and 681 score I really don't think you'll have difficulty unless you have a lot of debt for your income. A conventional loan may be a better option for your situation.

Dec 20th 2014
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Timothy Howard (timehoward)
#70 ranked lender in Utah - 150 contributions

Different lenders have different overlays. Ask many questions before choosing a lender

Dec 21st 2014
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Kenneth Kopper (KenKopper)
#1 ranked lender in Maryland - 529 contributions

Lance, your best course of action would be to contact a lender who would be able to provide you with a pre-approval certificate where they have not only reviewed income, credit and assets but are able to have your employment history reviewed to make sure it will not present an issue when your file is in underwriting. Depending on the overall strength of the file, using Fannie or Freddie instead of FHA might be a better option as well in terms of better overall loan terms. Please feel free to contact me to discuss.

Dec 22nd 2014
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Michael Patterson (MichaelPatterson)
#52 ranked lender in Washington - 71 contributions

FHA doesn't have a requirement for time on the job, but the underwriters will of course want to ensure the income is likely to continue and will remain stable. This is why they look back two years... in order to see what the next three years will hold. Providing a detailed letter of explanation for gaps in income would be important for both FHA or Conventional Financing. The FHA Back to Work program was specifically designed for people who suffered a negative credit event, such as BK, Foreclosure, Shortsale, etc... that was directly tied to the loss of income. Documenting a loss of 20% or more, sustained for a period of six months... and connecting the dots to that factor leading up to the negative credit event. Of course, showing that 12 months have passed since that time, and that the borrower is back on track and has recovered from the event is a requirement as well. These are what we call "manually underwritten files" and debt ratios are limited to the exact guidelines for instance. These are more difficult, but our company is closing them with the proper documentation in hand. If your situation didn't include BK, Foreclosure, etc... then the FHA Back to Work Pgm might not specifically be the best program for you. Standard FHA or possibly even conventional financing might be an option. Until a mortgage professional reviews the entire file with credit, income, assets, explanations on events, estimated equity position on the purchase, etc... it is difficult to offer an answer that suits YOUR specific circumstances. So, my recommendation matches the rest... contact a good professional licensed in your State. ;)

Dec 22nd 2014
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Bert Carpenter (BertCarpenter)
#39 ranked lender in Arizona - 1,815 contributions

I think you are being too hard on yourself. There are several programs that you will likely qualify for. Contact a local Mortgage Banker/Broker rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. We have access to loan products of MANY lenders, not just those of ONE bank, and can properly guide you. But more importantly, we are trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in Arizona (AZLO0911876 / AZBK0902429), Washington (WALO40586 / WACL3087) and California (CADOC40586 / CAFLL6036566). We are licensed by the CA-DBO under the CFLL and CRMLA. Loans made or arranged pursuant to CFLL or CRMLA license. ~ www.LoansA2z.com ~ 888-889-9950

Dec 22nd 2014
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