Experts Please Help - FHA Back To Work Program Question (insurance, loan officer)

[mortgagequestions]

Please see this series of events and offer your advice on the likelihood of qualifying for a home mortgage 1-year after a short sale under the FHA Back To Work Program:

- Home owned with a friend in CA
- 2011 - $200k/yr self employment job forced to end with economy.
- 2011 - Moved to FL for similar job, which fell through and made $30k in 2011.
- 2011 - turned CA property into "rental property", reflected on tax forms
- 2012 - found better job making $100k+
- 2012 (Q4) - Other owner for CA property had huge decrease in income and renters not found to cover $5k mortgage. My income was fine at the time without a decrease, but could not afford entire mortgage.
- 2013 - short sale completed, but the very last month payment was deemed 30 days late
- Today - credit is perfectly clean other than the 30 day late from the previous mortgage. Absolutely no debt and made $200k in 2013. Have more than 20% now for a home with 680 FICO.

Is there any hope to get approved under the 1-year Back To Work Program or do I need to wait until 2 years past the short sale date instead?

Thanks in advance!

[thelopez2]

Generally it is one year, this not commitment to lend and the are many considerations.

[Pfhtex]

Originally Posted by mortgagequestions

Please see this series of events and offer your advice on the likelihood of qualifying for a home mortgage 1-year after a short sale under the FHA Back To Work Program:

- Home owned with a friend in CA
- 2011 - $200k/yr self employment job forced to end with economy.
- 2011 - Moved to FL for similar job, which fell through and made $30k in 2011.
- 2011 - turned CA property into "rental property", reflected on tax forms
- 2012 - found better job making $100k+
- 2012 (Q4) - Other owner for CA property had huge decrease in income and renters not found to cover $5k mortgage. My income was fine at the time without a decrease, but could not afford entire mortgage.
- 2013 - short sale completed, but the very last month payment was deemed 30 days late
- Today - credit is perfectly clean other than the 30 day late from the previous mortgage. Absolutely no debt and made $200k in 2013. Have more than 20% now for a home with 680 FICO.

Is there any hope to get approved under the 1-year Back To Work Program or do I need to wait until 2 years past the short sale date instead?

Thanks in advance!

Why are you so fired up to get into an FHA mortgage? You are headed in the right direction. Why not keep saving, put 20% down at the 2-year mark, and avoid Mortgage Insurance, which would last for the entire FHA loan? You'd have to refi to get out of it down the road, and pay closing costs again at that time, so just keep doing what you are doing, and go Conventional at the 2-year mark.

[SmartMoney]

The one year exception, is just that, an exception. Documenting the loss of income as the basis is required. This means documenting both borrowers' loss of income is required. This can be done via CPA letters, IRS filings and evidence filed with the state corporation commission showing closure of company.

As for the final late payment, that also depends upon whether the payment was just never paid, or if you can prove a continued postponed closing is what delayed the payoff. Copies of communications documenting the delays for closing would be helpful in your case - but not guaranteed to work.

Just because HUD1 rolled out this program dos not mean the floodgates will open. Very few investors are actually doing these loans, and even then, only the most pristine are actually closing. Get your documentation pulled together and see a loan officer for an evaluation.