FHA finally does it!!! New program waiving waiting period for extenuating!!!!

[SweetGeorgia]

My husband got an FHA loan which closed in April. According to the mortgage broker, it was a miracle, and I believe him.

It wasn't just the foreclosures and the bankruptcy. It was also the Net Operating Loss (which is still huge) that appears on our tax returns. But I explained that it was the result of one year of foreclosures (of rental properties). Non-recurring, and his actual income has gone up over the years.

Also, he put 20% down on a very reasonably-priced house. The DTI ratio was low, and would have been still lower except that 1) the property taxes on the place are high because it's been a rental; and 2) PMI is impossible to avoid on a 30-year-loan.

Keep in mind that we talked to a LOT of lenders who dismissed us out of hand. Got a guy with Brightpath in Atlanta who was willing to try, eventually. I give him full credit because I TRIED to tell my husband it would be difficult or impossible to buy - and it nearly was - but in the end I was proved wrong.

[tobee43]

i just a FHA with quicken loans. so they are lending and doing refins for people with bks. it wasn't even difficult.

[suek]

Stonegate Mortgage does it

How can I find a lender that participates in this program? My mortgage person I used in the past says they never heard of it. They go by 2 years from discharge even if it is chapter 13. I paid my chapter 13 off EARLY so I would be ready to apply for a mortgage,now they tell me I could have applied in the chapter 13 and NOT AFTER for 2 years! That is not right!

Stonegate Mortgage, Indianapolis, IN participates......find a broker that works with them.

Sue

[justbroke]

Find a broker! You could look at Zillow Mortgages and I think they have a plethora of FHA lenders. You just type in your statistical information (mortgage amount, your income, and some other things), and it shows you a list of brokers and interest rates. They also have reviews for each of the lender/brokers so you can check out their reputation.

[wendlan]

How can I find a lender that participates in this program? My mortgage person I used in the past says they never heard of it. They go by 2 years from discharge even if it is chapter 13. I paid my chapter 13 off EARLY so I would be ready to apply for a mortgage,now they tell me I could have applied in the chapter 13 and NOT AFTER for 2 years! That is not right!

[suek]

Loan was finally approved through the Back to work program. Should be closing next week.....so there is hope.
This is less than 2 years after foreclosure, so there is hope!

Of course the criteria is very stringent. Read the rules, and if you aren't absolutely SURE that you meet the criteria, don't waste your time.....they are really looking at everything with a magnifying glass!!!!
Sue

[suek]

Well I finally found a house to buy....inventory is very low in this area. Most on the market is high-end, overpriced or CRAP!
I have a broker who is pre-approving me for the Back to work program. App going in today and I am supposed to get an answer by Tuesday.

Has anyone actually closed through with the Back to Work program?

Sue

[lostinnola]

I have been trying to get a mortgage for a few months now and I am having a hard time finding lenders that are using this program. I finally found one that has had some success with it but they said on all of them they have had approved that they showed a documented period of no work for 6 months or longer. In my situation they didn't think they could do this program but I found a lender that thinks they can get a waiver on the 3 years on a USDA guaranteed loan.

[copernicus]

It took the FHA 37 business days to process our waiver for being on the CAIVRS list but they came through last Thursday and WE CLOSED LAST FRIDAY!

[copernicus]

My final post in this thread.

WE CLOSED!

FHA took 37 business days (they claim to take only 15) to process our CAIVRS waiver but we closed yesterday afternoon.

Best of luck to all going through this process. I hope your results are the same.

[copernicus]

Interesting Note on CAIVRS

A quote from Mortgagee Letter 2013-26, HUD, August 15, 2013, page 13, Subject: Back to Work - Extenuating Circumstances

In accordance with Handbook 4155.1, mortgagees are required to screen borrowers through CAIVRS. If CAIVRS screening indicates that the borrower has had a claim paid within the previous three years on a loan insured on the borrower’s behalf by FHA, the lender may submit a request for waiver or resolution of the unresolved CAIVRS indicator. (emphasis mine)

Prior to submitting the request for waiver or resolution, for loans that meet the requirements found in this Mortgagee Letter, the DE underwriter must:

• fully underwrite the application to determine all other eligibility requirements have been met; and,
• approve the loan subject to additional conditions.

It appears there is a vehicle by which a waiver for a CAIVRS indicator can be requested/granted. It seems mortgagees can opt out of processing for a waiver though. At least it is known an applicant can ask the lender to request the waiver.

It also appears that CAIVRS screening is a required task for the Back to Work - Extenuating Circumstances program.

I am encouraged that our underwriter approval came with no "subject to additional conditions." I do have the understanding that when it comes to these dealings anything can happen. I won't feel secure until we complete the closing session and walk through the door with our own key in hand.

[copernicus]

Roller Coaster Ride

I hesitate to post this since we're not at closing yet but . . . our loan has been approved pending appraisal and foundation inspection!

Yesterday was a real challenge for us. First thing in the morning we were notified the loan was approved but we were also at the end of our second contract extension with the sellers. Later that morning we were informed that the sellers were going to take a low ball cash offer from another party and would not go for another extension so we could obtain our appraisal and foundation inspection. We were crushed. I was of the opinion the fault squarely laid on the lender who took three weeks to process our application after taking a month following institution of the new FHA program rules to begin accepting new applications. No matter, we signed the unilateral dissolution of the purchase contract and decided to look for another place.

This afternoon our realtor called to tell us the sellers have reversed their decision after being advised by their realtor that it would be far better for everyone if they would allow the extension. The biggest obstacle in this process has been overcome. They also indicated they were more inclined to sell to someone who wanted the property for a home as opposed to an "investor" especially if it meant they had to take a sizable loss.

So, we anticipate we'll close somewhere near mid-November and having Thanksgiving dinner in our new digs.

Lord willing and the creek don't rise . . .

I have to remember at this point we haven't signed the extension yet and I may have just halleucinated the whole thing but I'll get back to this and let all know when things are firmed up.

[tobee43]

I will definitely be checking to see if we are on the list, We completed the short sale12/2012, bk7 with mortgage included 12/2010.

ones name doesn't get on the list until the government actually issues the actually $$s to the lender for the amount lost. that in itself could take more than a year, but until that moment happens, that's when your clock starts to tick.

[JacaG]

I will definitely be checking to see if we are on the list, We completed the short sale12/2012, bk7 with mortgage included 12/2010.

[tobee43]

jacag, right! actually those that filed bk and include their mortgages due to job loss etc shouldn't even be on the CAIVRS list! i have read tale after tale from those trying to get their names removed from that list.

i found out to late that the lender should have had us write a letter about the terms of our bk and we would have been removed. at this point i know we will be on it until 2016, and frankly i'm fed with all of these controlling issues, they pick and chose whom they are going to help. however, one can go it alone through FHA and get themselves off the list which only clears out monthly, so if you are in a tight spot be prepared to wait a bit to get removed.

if i was preparing to buy again and needed a mortgage i would check the list myself and do what have to. (we ended up coming up with more cash once again we are bypassing the banks all together as we did with this house), many of these lenders are giving you hope only to find out the final decision is a NO GO since underwriting waits until the end of the process to check the list as opposed to being the very FIRST thing they should do.

if you owe the government anything from the dept of labor to FHA to student loans and you defaulted, you are on that list!