topic Re: Has anyone closed under FHA Back to work program? in Mortgage Loans

Has anyone closed under FHA Back to work program?

Anonymous — Wed, 06 Nov 2013 21:52:21 GMT

Hello. I had a foreclosure about a year and a half ago. My credit was good prior to. I had lost my job and fell behind. My credit since has been perfect. I don't have more than 2% credit utilization and no other bills. I am wondering if anyone here has closed under this new program and can give some insight. I am naturally nervous. I did the class about 35 days go found and house and am now under contact.

Re: Has anyone closed under FHA Back to work program?

yepbob — Thu, 07 Nov 2013 02:03:04 GMT

I'm super interested in this - I called a few lenders in my area (Iowa) over a month ago and they told me they couldn't do the loans under this program yet because there were no guidelines from FHA on the program and they couldn't close the loans without them. They all told me to call back later in the year...

Re: Has anyone closed under FHA Back to work program?

pattybear — Thu, 07 Nov 2013 02:16:45 GMT

I am interested in this, too. It's odd that they told you they didn't have guidelines from the FHA. I was able to find and download the guidelines and requirements from the FHA website in August, when it first came out.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Thu, 07 Nov 2013 02:36:01 GMT

The guidelines have been on FHA's website. I didn't see the part on the class requirement at first, but then took it right away. I had verified it had to be taken 30 days prior to application, so I got it done. I am just looking for anyone who has gone through it so I have an idea what to expect.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Wed, 13 Nov 2013 06:16:36 GMT

BeingHopeful,

I'm going through this right now. I did the counselling online/over the phone through Genesis Housing Services out of Arizona. (I'm in Wisconsin). It's been a bit of a ride.

I talked to a few morgage brokers who either didn't know of the program or didn't have any lenders who were adopting the guidelines. Finally, I talked to a local mortgage broker who had not yet written a Back to Work loan, but had been trained on it and had a wholesale lender who had provided them with information on it and indicated they had adopted the guidelines.

I put together a LOT of paperwork. W2s, tax returns, verifications of earnings (salary keys for the work number), severance/layoff notice, recorded deed transfer for my deed-in-lieu from the county, divorce papers, bank statements, ira statements... pretty much anything my broker and I thought could possibly be necessary.

After reviewing everything, my broker issued me a pre-approval letter based on FHA back to work guidelines.

After waiting out the 30-day waiting period on the counselling, I submitted an offer to purchase and we submitted our formal loan app to underwriting. Underwriters came back less than 24 hours later seeking some additional information, but nothing that we shouldn't be able to produce from all the paperwork we had pre-gathered.

That's where we're at now; waiting for the underwriters second look. Hopefully I'll have some good news in the next couple days.

The program is so new, it seems everyone is cautious and somewhat uncertain about it. Call around to a LOT of brokers until you find one that sounds confident about the program, and knows they have a participating lender that they can write with. Get all of your paperwork ready, anything you think you could possibly need... and make sure to read and re-read the 2013-26 Mortagee Letter to ensure that you meet all of the criteria spelled out.

I'll let you know how my underwriting turns out. Best of luck to you!

Re: Has anyone closed under FHA Back to work program?

Anonymous — Wed, 13 Nov 2013 14:25:22 GMT

I had writted a LOX for the loss of my home from when I had lost my job. I have found a house and have an accepted offer on it. I had taken the class 30 days prior, so last week I had signed the application and it was sent off Tuesday. I know it is currently in review with an expected answer in 48 hours. Last night, my mortage guy asked me for my divorce papers. So, far it hasn't been approved, but it hasn't been denied either.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Wed, 13 Nov 2013 15:00:25 GMT

Sounds like we're at the same point. Fingers crossed for both of us! Did you go through a bank or a broker? If a broker do you know what lender they are using? Just curious.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Wed, 13 Nov 2013 15:08:21 GMT

I have a friend who is a broker. Not sure who the lender is art the moment, but he did say it was one with no over lays. He feels pretty confident about the whole thing, but I can't help being nervous about it.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Fri, 15 Nov 2013 07:10:18 GMT

We would like to have done this, but we do not meet one of the requirements - 20% loss of income for 6 months.

When my husband lost his job, he looked for 2 months then we moved from Florida to Seattle. The move cost us $30,000 plus the rent for a house was higher than our mortgage. We had to default on the mortgage loan. Our income only dropped 10%, but we had additional expenses and the cost of living out here is much higher.

We have no other late payments. It's been over a year since our short sale. My FAKO is back up to 729. I didn't bother pulling new scores since we cannot buy right now. We are eligible for a conventional loan in 10 months, so we will just have to wait.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Fri, 15 Nov 2013 14:43:43 GMT

I sent my guy a message this morning trying to find out what is up. He said it is underwriting and they called him yesterday with questions. He said he may have an answer today, Monday, or next Friday. I can honestly say this is not a quick process by any means, but if it all goes through, it will be worth it in the end.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Fri, 15 Nov 2013 16:34:28 GMT

VanRickets,

Were you current on the mortgage prior to the short sale? Or did you miss payments first?

When was the short sale completed?

Were the moving expenses tax deductible? I wonder if there's a way the moving expenses could be deducted from income?

Re: Has anyone closed under FHA Back to work program?

Anonymous — Fri, 15 Nov 2013 16:37:51 GMT

BeingHopeful,

My broker submitted the remaining financial documents the underwriter had asked for yesterday. He was advised that they should be able to review the file today. So I'm hoping to hear something today. Another week of waiting would be brutal!!

Re: Has anyone closed under FHA Back to work program?

Anonymous — Fri, 15 Nov 2013 16:39:10 GMT

Let us know when you hear something, and I will do the same!

Re: Has anyone closed under FHA Back to work program?

ShanetheMortgageMan — Fri, 15 Nov 2013 20:04:47 GMT

I've been told by several of my loan officer friends they are already getting approvals & closing under this program, so while it's not an easy program to get approved under, it is certainly possible.

We're about to do one that couldn't be more complicated, manufactured home purchase, and includes a foreclosure on a prior FHA loan so there is a CAIVRS hit which requires the file to go HUD in Washington D.C. to get their approval to waive the CAIVRS hit.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Mon, 18 Nov 2013 21:00:16 GMT

Heard back from my mortgage broker today... APPROVED!

He's out of the office today and won't be able to review the specifics until tomorrow to see if there were any conditions, but his processor told him we had the approval!

I'll updated tomorrow when I know what conditions there are. But I sure like to hear the word Approved!

Fingers crossed for you!

Re: Has anyone closed under FHA Back to work program?

Anonymous — Mon, 18 Nov 2013 21:12:11 GMT

Congras to you! I am srill waiting in limbo. Hoping to find out something today.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Tue, 19 Nov 2013 11:52:00 GMT

May I ask which lender you used to get the approval . I was approved , found a house and had a purchase contract got all the way to the appraisal / inspection point and the underwriter revoked the approval stating my financial loss reason was not fully out of my control . Second try the under writer said my loss of income had to be "household Income" well I owned a small business which my wife and I worked , this was our only income and the poor economy caused us to become non profitable which in turn cause us to file BK , loose our house and van basically hit rock bottom but yet its not "household income ". Anyone with a good lender who may be able to help I would really appreciate it

Re: Has anyone closed under FHA Back to work program?

Anonymous — Tue, 19 Nov 2013 20:28:35 GMT

I received my good faith estimate in the mail yesterday. I called my mortgage guy yesterday, and he said that was a good thing and he was told yesterday it was to be reviewed by a manager today, so he is hoping to hear something today. Hopefully he can order the appraisal and we can get moving.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Thu, 21 Nov 2013 11:31:34 GMT

I dont want to wave the negative flag but Getting the good faith estimate is not the sure thing you are approved .

I was approved , then told I needed a signed purchase agreement ...got it , then I was told I had to pre pay for the appraisal / Inspection ...did it then waited and waited and then I got an E mail saying I was denied . The UW said my hardship circumstances were not "far enough out of my control " . I owned a small business which was my source of "houseHold funds" the economy took its toll on my business and I spent all my savings to keep it open . The other arguement was that my hardship was from a business and not household income .......it was my job as well as my business and HUD came to my rescue stating self employment is considered .

Just for the record I recieved about 4 good faith estimates and each one was different amounts ...none matched the house I had a purchase agreement on.

I am now a skeptic and when the keys are in my hand I will be able to say I was approved . Several Loan officers have told me they have not seen a single approval yet .

Why would the banks be so tight about it , it opens a whole new market for them , most of them got Gov. money bailouts so why can't they pay it forward and Help the little people ?.

Re: Has anyone closed under FHA Back to work program?

Anonymous — Thu, 21 Nov 2013 17:57:14 GMT

Mrsmittyone,

Where are you located? My broker is in WI, but I can try to find out if the wholesale lender they are using for my loan serves your state as well.

As for your exact situation, I can imagine its tricky for the lender. It's black and white for you, but might leave some gray area for them. I know in my case I had an actual layoff letter from an employer. I could see them arguing, "since it was your business, how do we know you did everything possible?" Not saying they SHOULD be that nitpicky, but it might take finding the right lender for you.

I think a lot if letters are anxious because while the guidelines spell out criteria, they don't go into details about specific situations such as yours. Lenders are afraid that FHA will come back and say something about the loan didn't meet guidelines, and they won't bail them out in case of default.

I'd suggest a really, really detailed letter of explanation of all reasonable efforts you took to keep your company afloat. Keep searching for a good broker who will fight for you.

Best of luck!!