excerpted from …
Hawaii Mortgage Company’s Mortgage Market News and Insight for the week ending August 23 2013
Excellent New Program for Those Impacted By Recession
If you have read this publication for any length of time, you will know I am a free market type of person who is not a fan of government bailout programs. BUT this new program announced by FHA is not a bailout. It is a reasonable thoughtful approach to truly determining if someone should be a mortgage loan or not. FHA announced their Back to Work – Extenuating Circumstances program which gives those people who were affected by the recession the opportunity to get financing.
The program is simple. If your credit was ruined due to a loss of income, you can get a new mortgage. If you experienced a loss of income due to the recession, and that loss was at least 20% of your income, any derogatory credit that resulted from that will not be counted against you, so long as you are current now.
That’s right. Even if you had a foreclosure, or a short-sale, or even a bankruptcy, so long as it was at least 12 months ago, and you are now current on your bills, you can buy that new home.
It is not dependent on you getting that income back to qualify either. If prior to the recession you were making double what you are right now, and lost it all, so long as your new income is sufficient for the new loan, your past credit woes will not be counted against you.
Why this is such a good program is that it is a common sense approach to underwriting. We in this country experienced economic times that were so extraordinary that analyzing someone’s credit using traditional means just doesn’t work or make sense. For many Americans, the recession brought fundamental changes to their jobs and careers. Eliminating the traditional 4-7 year waiting periods to gain home ownership again just makes sense.
For more information, contact
Hawaii Mortgage Company Inc.
PHONE: (808) 988-6622
FAX: (808) 988-7722