what is an FHA hardship loan and how do you qualify by lynda.stevensno19... from Topeka, Kansas. Jan 24th 2014
The program is also fairly strict in who it helps. Potential borrowers must jump through a few hoops, stack of documents in hand, to prove that they were responsible borrowers that suffered from a financial hardship beyond their control, and that they are responsible once again.First, they must prove that the foreclosure or short sale was caused by what the FHA calls an "economic event" -- a loss of income or employment, or a combination of both, that is beyond the control of the borrower. The economic event must have caused an income reduction of 20 percent or more for at least six months.Second, they must prove that they have "fully recovered" from the economic event that led to the foreclosure, short sale or bankruptcy. So if a borrower underwent a foreclosure due to a job loss, the borrower must then prove that he or she is employed and able to afford loan payments once again. Beyond that, the borrower must also prove that his or her credit was satisfactory before the economic event, meaning that his or her credit report was free from late payments or other major derogatory credit issues, and that since the foreclosure, satisfactory credit has been re-established over the past 12 months.Third, borrowers must complete at least one hour of one-on-one housing counseling from a Department of Housing and Urban Development-approved counselor at least 30 days but no more than six months before submitting the application for an FHA loan.
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Great answer previously submitted. Open Mortgage is able to help people with a mid FICO score even down to 600. Still rates are relatively low. I am licensed in KS, so I would be glad to assit you through the entire process.
FHA has the "Back to Work" program and the guidelines are fairly relaxed.. you must document a 20% reduction income, have re established credit, and have had no 30 day late payments on ANY obligation in the past 12 months.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
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