FHA question

[dreamer2014]

I have found VERY HELPFUL info in this forum and I am soooo grateful.

question:we sold our house 2013 (short sale)

however,  we moved 2099 after dh and lost our jobs. is it true with fha btw pgm that if we had the income to pay the mort when the house sold, we would not qualify for new fha pgm? I really need clarification on this.

[ShanetheMortgageMan]

What does the "we moved 2099" part mean?

The Back to Work exception requires you either lost your job or wages decreased, so that your income fell by 20% for at least a 6 month period of time.  It must've happened prior to the event you are trying to get the exception for.  Since you lost your jobs that is the first step of being eligible, so did your income fall by at least 20% for a 6 month period of time?

[dreamer2014]

I meant 2009. I am told by a couple of LO that we met all criterion for fha btw except when it comes to when the short sale happened, 2013, due to the fact we made enough to pay the mortgage when we recovered. Nevermind the bank wanted 60K up front to get caught up. Is this the bank guidelines or fha?Thanks for any help.

[ShanetheMortgageMan]

So when did you start having trouble with the mortgage & had to short sell, before you went back to work and "made enough to pay the mortgage" or after?

[dreamer2014]

Before we went back to work and made enough to pay the mortgage. We did loan modifications in the process then eventually we put it up for sale and it took almost a year to sell it, short sale.

[ezdriver]

The event that you must be able to identify, and then tie to the shortsale, is a loss/reduction of employment that cause at least a 20% drop in income. If you are unable to clearly identify that specific event, you will not qualify for the an FHA mortgage under the guidelines pf its Back To Work program. So did you have such an event happend and when did it happen?

[dreamer2014]

Yes, the job loss happened  in 2009. dh and I both loss our jobs and the effect was getting behind on our mortgage.  we did try renting but after an unethical broker and a few bad tenants and an eviction we got too behind unable to pay it. it was until 2012 when I finally found gainful employment and we put the house up for sale.

[ShanetheMortgageMan]

Well it sounds like you definitely would have a shot.  The key is being able to write out a timeline that connects the reduction of income to the short sale.  The only part that the underwriter could question is if the short sale was more related to having bad tenants than job loss, so make sure that part of the explanation is very detailed.