Buy a home one year after bankruptcy, foreclosure or short sale!
The FHA Back to Work Program at 1st Alliance Lending

Over the last few years, the collapse of the housing market, the market crash, and crushing health care costs left many Americans buried. Faced with mounting debt, falling home values, and job loss, many lost their homes or were forced into bankruptcy. Many are now on the road to recovery from these traumatic life events, but now face the prospect of having to wait as long as seven years to again become homeowners.

There is now a program for those who lost a home, a job, or both during the Great Recession, but are ready to buy a home again. The Federal Housing Administration’s Back to Work program is helping many recapture the dream of owning their own home without years of waiting.

Instead of the usual multi-year wait to get a mortgage, qualifying borrowers are now able to apply for a mortgage just 12 months after bankruptcy, foreclosure, short sale or a deed in lieu.
In addition to meeting the usual requirements for an FHA loan, the Back to Work program added elements to the loan process:

  • Housing counseling – You will need to take a HUD approved housing counseling class to learn strategies for successful home ownership in the future. There will be a 30 day waiting period between the counseling and an actual application. (click link:
  • Documentation of hardship – Borrowers will need to prove that the financial hardship they experienced was beyond their control, and will usually need to show an income reduction of 20% or more that directly led to the bankruptcy or home loss. Extreme increases in expenses, such as medical bills, can be sufficient, even if no income loss is directly reported. A good credit history before the hardship is also a good indicator of future success.
  • Proof of recovery – Underwriters will want to make sure that the financial hardship is over. This can be shown with a clean 12 month credit history, establishment of new credit, ability to save money, and full time employment.

HOW 1st Alliance Lending CAN HELP
There are many reasons why 1st Alliance Lending is the best lender to help you buy a home using the Back to Work Program:

  • Proven success with the Back to Work Program – We closed one of the first Back to Work loans in the country, just 3 months after the program was introduced. Since then, we have seen hundreds of these loans. While other lenders may have only seen a few of these cases and don’t really understand the process, we know these loans inside and out – and we know how to close them!
  • Experience with distressed borrowers – We have led the nation in helping borrowers avoid foreclosure after financial hardships. We championed the Hope for Homeowners program, FHA short refinances, and even a second chance program for people who were years behind on mortgage payments. We are extremely familiar with documenting hardships, credit analysis, and determining future success.
  • Individual, personalized attention – We don’t use computers to determine your hardship. At 1st Alliance Lending, we will manually underwrite your entire file. This means that real people will review your situation, read your letters and listen to your story. Our company has operated this way at every level, and always has. You will have a personal guide to help you though the entire process from start to finish. At 1st Alliance Lending, we understand that people are far more than just their credit scores.
  • If it sounds like the Back to Work for program may be for you, click here to reach out: