Back to Work Program by HUD

The HUD Back to work program allows borrowers to qualify 12 months after a Bankruptcy. *

Only available through certain lenders.

HUD recently announced the Back to Work Program. The “Back to Work – Extenuating Circumstances” program. The Back to Work Program is aimed to help people who have lost their home through foreclosure, short sale, or bankruptcy. Back to Work Program Minimum Eligibility Requirements:

The borrower must meet several minimum eligibility requirements to qualify. The borrower must have experienced an economic event. This is defined as any occurrence beyond the borrower’s control that resulted in a loss of employment, income or a combination of both.

This must have caused a reduction in the borrower’s household income by 20% or greater. The reduction must of lasted six months or longer. Borrowers must have recovered from the “economic event” with the re-establishment of satisfactory credit. The borrower must attend housing counseling from an approved HUD Housing Counseling Agency. Search HUD homes on the Hudhomestore website.

Back to Work Program Highlights:

  • Previous bankruptcy, foreclosures and short-sales are acceptable. You no longer do you nehudhomestoreed to wait three years after a previous foreclosure. Two years after a bankruptcy to obtain affordable financing. The minimum is now 12 months.
  • Only a 3.5% down payment is required.
  • No income restrictions.
  • Positive payment history re-established.
  • Gift funds permitted.
  • Single-family maximum loan amount of $729,750 in high-cost living areas.
  • First-time homebuyers are acceptable.

Typically lenders will require a higher credit sore for the HUD Back to Work Program. This is due to the recent bankruptcy, or foreclosure making you a high risk borrower. We currently do not work with any lenders that offer this program, but are aggressively searching for a lender that participates in it.

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