FHA Back to Work Program Gives Families Hope

How long do you have to wait after filing bankruptcy to qualify for a home loan?

Are you back on your feet after the housing crisis and ready to purchase a house?

There is hope and a second chance if you lost your home in a foreclosure or short sale. Thanks to the new federal program called, Back to Work – Extenuating Circumstances, if you have recently gone through a financial hardship as defined below, you may qualify for a new home loan.

Previously, you would have to wait 3 or more years after suffering your hardship before you could qualify for a home mortgage loan. Now, it is only a 12 month wait. The program has been running since 2013 and will continue to be available until the end of September 2016. The goal of the program is to offer families a second chance at home ownership.

What Is a Financial Hardship?

According to the Back To Work Program’s website, here is a list of what is considered a financial hardship,

  • Bankruptcy- Chapter 7 or 13
  • Short Sale of Previous Home
  • Foreclosure
  • Modification of Previous Mortgage
  • The Sale of a Home Because of Pre-Foreclosure Status
  • Deed-in-lieu

How Do I Qualify for The FHA Back to Work Program?

If you have been through one of the financial hardships above and dream of owning your own home again, the FHA Back to Work Program might be perfect for you. Let’s take a look at how to qualify for the program. Key elements include:

  1. FHA loan requirements are met.
  2. Providing Documentation About Your Income: This may be the most important step. To qualify for this program, you will need to show that your income dropped by 20% for 6 or more months. This will show that your hardship was out of your control. You can prove this by offering W2s or a verification of employment.
  3. Proving Financial Recovery: The first step is demonstrating that you are no longer in financial crisis. According to MSN Real Estate, you can show that by your credit score being above 640.
  4. Counseling Session: The last piece is to attend a HUD-approved counseling session that provides education to home buyers.

HUD Counseling Agency for Novi, Michigan

If you live in Novi, Michigan and would like to learn more about this program, you can contact one of the following agencies:

196 Cesar E. Chavez Ave.
Pontiac, MI 48343-0598
Phone: (248) 209-2767

1200 N Telegraph Rd/Bldg. 38E
Pontiac, MI 48341-0435
Phone: (248) 858-5402

For all other cities, please visit HUD.gov US Department of Housing and Urban Development.


The FHA Back to Work Program provides hope and a second chance at home ownership for those who experienced unfortunate circumstances in the housing crisis. The program will run through September 2016 and will be offered to those who meet certain requirements.

If you have any questions, or if we can help you find your next home, please give our office a call. We are here to help.