Commonly, people who people who experienced a “Negative Credit Event” like a short sale, foreclosure or bankruptcy would have experienced an extended delay of anywhere between two and seven years before they could purchase a home. But now there is a new program called “The Back to Work Extenuating Circumstances Program,” that is designed to allow these people that were impacted during the housing crisis to purchase a home! Through this program, they have an opportunity to qualify to buy within as little as 12 months. The program is going to remain in effect for any applications that have a case number through September of 2016.
Getting back to the “Back to Work Extenuating Circumstances Program,” what are the standards that would allow someone to qualify for it?
In order to be eligible for this program, applicants are going to need to prove four things.
Getting back to the “Back to Work Extenuating Circumstances Program,” what are the standards that would allow someone to qualify for it?
In order to be eligible for this program, applicants are going to need to prove four things.
- First, they need to prove that they’re income declined by 20 percent or more for a six month period and that those circumstances were the result of a negative credit event.
- Second, they’ll need to be able to provide documentation if the negative credit event qualifies under the “Job lost beyond applicant’s control” category. This might include publicly available information on a reduction in workforce or that a company closed. Applicants can also look to see if they had unemployment compensation.
- Next, they have to prove that, over the course of the last twelve months, they haven’t had any credit hiccups like a late installment or any new collections or judgments. They also have to have a clean credit record for the last 12 months. So, they’ll need to show that they have had a positive rental history or that if they’re living with their parents they haven’t had any other credit issues.
- The last criteria is that applicants will have to go through Housing Counseling with an approved counselor no later than six months from the application date and no sooner than 30 days from the application date.
Here is the August 15th, 2013 letter from U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: http://portal.hud.gov/hudportal/documents/huddoc?id=13-26ml.pdf
Want to find out if you qualify? Contact Curt Smith! http://www.curt-smith.com/
2 comments:
That was a great information thanks for sharing i love the article
Glad to hear! Please let me know if there is anything else you'd like me to write about or questions I can answer. 😃
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