New “Back to Work” lending program helps borrowers regain financial stability

The “Back to Work” loan program launches to save families from repeating the same mortgage mistakes twice

The new “Back to Work” lending program is designed to ensure successful homeownership for families who have previously had financial hardships. Launched in August, the program may save millions of families who continue to suffer from the housing market crash of 2008, offering a second chance and brighter future.

One beneficial key factor in the program is that families may now apply for a new mortgage only 12 months after losing their home. The program waives the two-year waiting period after experiencing a Chapter 7 or Chapter 13 bankruptcy. The lessened waiting period will allow families to get back on track sooner, as long as they can prove they’re demonstrating full recovery from their financial loss.

Most families in the program face prior foreclosure, but some also face prior short sales, loan modification, deed-in-lieu, forbearance agreements and even bankruptcy. Mortgagee Letter 2013-26 specifies who in eligible in what circumstances.

If you are dealing with foreclosure or short sale, you first need to apply to the “Back to Work” loan program with a Federal Housing Administration approved lender. After acceptance, there will be neither a premium nor an additional fee at closing. You will also need to attend housing counseling, where you will receive advice on buying a home and credit issues among other helpful guidance. Mortgage companies typically recommend that your monthly mortgage payment does not exceed 28 percent of your gross income.

Rebuilding credit may seem frightening, but the new “Back to Work” lending program gets borrowers back on track. Paying a monthly house bill will boost your credit, which makes buying a home a great place to begin financial reconstruction, especially with the support of a housing counselor. Since families must demonstrate they are becoming financially stable before program acceptance, your credit score will start to revamp itself.

Almost any family that has had a financial crisis can apply for the lending program. If your current lender does not participate in the new “Back to Work” lending program, finding a new lender will not be difficult. There are insured loans in all 50 states, all U.S. territories and in the District of Columbia. More than ever, mortgage companies are ready to help any family still suffering from the housing crash; your new financial life starts now.