Has anyone closed under FHA Back to work program?

[pinkgirlmommy]

Thanks.  I have been told that it is fully underwritten.  Just waiting for waiver.  Appraisal was actually done by HUD before we made our bid and lender is using this appraisal.  No news today so we are applying for 1 more extension.  Hopefuly we wont' have to use the full 15 days because it is expensive!

[pinkgirlmommy]

So frustrating!  I sent that information to my loan officer and asked him a few other questons and he completely did not respond about calling the numbers I sent him.  He is kind of a jerk and I wish I would have used someone else but he was highly recommended.  He could have at least said thanks for the suggestions and I wish he would let me know that he is calling daily, but instead I have to keep asking him.  We went ahead and applied for a third HUD extension and they approved it, so we have 15 more days from today.  I really hope we get this CAIVRS waiver soon!  It has been 15 "business" days now.  They have about 5 more business days to get it to my loan officer because he then has to turn around and get the paperwork to HUD by the 30th so we can close by Jan. 6th and move.  We have to move out by the 7th.  Our landlord has rented our house out and will only give us until midnight the 7th.  I just don't know what else we can do to get this waiver so we might be putting everything in storage and living in a hotel on the 7th.  This is so crazy!  I wish my lender would call and bug them every day.  Can I call or does it have to be the lender?

[Anjones]

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@pinkgirlmommy wrote:

So frustrating!  I sent that information to my loan officer and asked him a few other questons and he completely did not respond about calling the numbers I sent him.  He is kind of a jerk and I wish I would have used someone else but he was highly recommended.  He could have at least said thanks for the suggestions and I wish he would let me know that he is calling daily, but instead I have to keep asking him.  We went ahead and applied for a third HUD extension and they approved it, so we have 15 more days from today.  I really hope we get this CAIVRS waiver soon!  It has been 15 "business" days now.  They have about 5 more business days to get it to my loan officer because he then has to turn around and get the paperwork to HUD by the 30th so we can close by Jan. 6th and move.  We have to move out by the 7th.  Our landlord has rented our house out and will only give us until midnight the 7th.  I just don't know what else we can do to get this waiver so we might be putting everything in storage and living in a hotel on the 7th.  This is so crazy!  I wish my lender would call and bug them every day.  Can I call or does it have to be the lender?

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So my lender had tried calling and they informed him that they will only speak with the underwriter.  I'd say if there was anyway to urge your loan officer to pass this onto the underwriter it would be appreciated.  Sorry you are having a hard time, I understand how frustrated you are...  You can also write to your congressman about them not meeting the 15 day deadline.  Others have been doing this.

[Anjones]

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@Anjones wrote:

Here's contact info for the insurance director...

Edit: personal contact information removed, it's against our TOS to post that on this forum. --Rev

Edit 2: said information may be exchanged by private message; splitting hairs but I don't make the rules .  Welcome to the forums as well Anjones!

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No prob but that information is on HUDs website, anyone can access it.  Perhaps you will allow the link?
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/dirhousi

[Revelate]

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@Anjones wrote:

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@Anjones wrote:

Here's contact info for the insurance director...

Edit: personal contact information removed, it's against our TOS to post that on this forum. --Rev

Edit 2: said information may be exchanged by private message; splitting hairs but I don't make the rules .  Welcome to the forums as well Anjones!

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No prob but that information is on HUDs website, anyone can access it.  Perhaps you will allow the link?
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/dirhousi

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Oh dear, I hadn't realized that .

The link is absolutely OK!

[RW771]

Well, I'm not sure if this is the right place to ask my question but I didn't see any other threads but this one pertaining to the Back to work program so here goes!

We bought our house just a little over 2 years ago. We had to qualify and finance the house in my name only due to the situation my husband is in. We are now wanting to buy a larger house (due to having to move my mother in with us unexpectedly due to health issues) and have to use my husband's income now to qualify for the house we are wanting. My husband and his ex wife were divorced back in 2007 and she was court ordered to re-finance the house and have it placed in her name. My husband pretty much wasn't allowed on the property or anything to do with it since she and her soon to be new husband were living in it. Well, he kept trying to get her to refinance and even tried putting it up for sale and nothing. Fast forward 5 YEARS and she finds out she has cancer. She ends up short selling the house, and so of course my husband's name is tied to it still and here we are. I spoke with my lender about the situation and he tells me we have to wait 3 years from the final date of the short sell before he is able to buy a house again.

We found out about this program a few months ago, and I called my lender to see if we would qualify under this program. We have no late payments, both have good credit and a decent amount saved for a down payment. My lender advised me that they are not yet participating in the program and that they haven't been trained on how it works and therefore couldn't help us. He also said he doesn't know of any lenders in TX that are doing this.

Anyone know of any nationwide lenders or lenders here in TX that are participating? We are familiar with the whole process and what all the requirements are, just needing to find a lender that can help us. I've called several lenders here locally and most of them claim they've never even heard of this program. It just sucks being stuck for another year and a half before we can even begin the application process for something that should have been taken care of many years ago!

TIA!

[ShanetheMortgageMan]

There are plenty of lenders in TX who are offering the FHA Back to Work program.  You may want to inquire with a mortgage broker as they are usually approved with a dozen or more lenders, which assuredly one of them will offer the program.

I didn't see you mention anything about your income dropping by at least 20% or more for 6 months though, that is a requirement for the program.

You may also be able to get around the 3-year wait because the house was awarded to the ex.  It's a long shot, since technically your husband was still obligated to make the payments (unless the lender provided a release of liability to your husband), but it's something that I'd definitely document (divorce decree) when your loan goes to underwriting as it makes the short sale less severe in the underwriter's eyes.

[RW771]

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@ShanetheMortgageMan wrote:

There are plenty of lenders in TX who are offering the FHA Back to Work program.  You may want to inquire with a mortgage broker as they are usually approved with a dozen or more lenders, which assuredly one of them will offer the program.

I didn't see you mention anything about your income dropping by at least 20% or more for 6 months though, that is a requirement for the program.

You may also be able to get around the 3-year wait because the house was awarded to the ex.  It's a long shot, since technically your husband was still obligated to make the payments (unless the lender provided a release of liability to your husband), but it's something that I'd definitely document (divorce decree) when your loan goes to underwriting as it makes the short sale less severe in the underwriter's eyes.

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Thanks for the reponse Shane. Since I've only bought one house, I've only used one lender, and even with the divorce decree, he said they wouldn't accept it. Our income did not drop by 20%, but his ex wife's did, once she found out she had cancer and wasn't working and couldn't pay her bills. The way I understood it was since they both are still on the note, either one of them would have to have their income decrease by 20%? I'll have to get on the ball looking for mortgage brokers that can help me out a little further regarding which lenders offer this program! Surely there's some lenders in Dallas (next major city to us) that offer this, I'm truly amazed that none of the lenders here in my town even know about this program (or so they say).

[pinkgirlmommy]

I actually went to my lender with HomeTeam mortgage and asked him about this loan and he was not familiar with it.  Since then, his office has discussed and we are currently almost at the end of the process- just waiting on our CAIVRS waiver.  However, since he didn't know about the program it has been very bumpy.  At first he said they had three banks that were doing this type of loan, and then at the end he told us that two of the banks dropped it and there is only one bank left.  He hasn't told me who the bank is that we are working with, but we are in Texas.  I would check with the person that is recommended earlier in this thread with Treadstone mortgage since they are familiar with the program.  Does your lender have to be in Texas?  Good luck!  I will let you know who we used if we ever get this closed!

[ShanetheMortgageMan]

Yeah the divorce decree wouldn't be a guarantee, but I could see it working with appropriate documenation & letters of explanation... the ex-wife being awarded the home and being required to refinance, him no longer living in the home, & the ex-wife getting cancer and couldn't work.  It'd be tough and the loan officer may have to do some persuading with the underwriter, but it has a shot.

For the Back to Work program, it's the "household income" (borrower on the new loan + all other household members residing in the primary residence at the time of the economic event who were also co-borrowers) that needs to drop by 20% for at least a 6 month period.  So it'd have to include your husband + his ex-wife's income I would think (although your husband wasn't living in the primary residence at the time of the economic event).  I haven't run into a situation where the borrower (your husband) has moved out of the home and is looking to qualify for an exception to the 3-year wait after a short sale where the mortgage was the ex-wife's responsibility to refinance into her name though.  I could see an underwriter having a little bit of a tough time on that one.  That is why I think the divorce decree/ex-wife's cancer situation would help.

Realize that this Back to Work program it just an expansion of FHA's existing requirements to document an "extenuating circumstance" which would allow someone to obtain FHA financing sooner than standard FHA waiting periods on foreclosures, bankruptcies, short sales & deed-in-lieus.  Previously FHA did not see a decrease in income as an extenuating circumstance, but in 2013 they added that situation to the extenuating circumstances definition (probably because a lot of people were saying that situation was their extenuating circumstance and underwriters weren't sure if it was going to be acceptable to FHA or not).

You mentioned you are near Dallas, you know there is a fella here named DallasLoanGuy?