The FHA Back to Work program allows for new home purchase just 1 year following short sale, bankruptcy, or foreclosure!
Many people in the last few years have suffered from the loss of their homes due to foreclosure, short sale, or bankruptcy and were told they could not purchase again for several years. But now there is new hope to get back into a home in a shorter amount of time with a new government backed program.

Under the federal program called “Back to Work – Extenuating Circumstances”, if you have had a foreclosure, short sale, deed-in-lieu of foreclosure, or have declared bankruptcy you may qualify for a new home loan in just 12 months with the same low interest rate and down payment as any other FHA loan.

Key Features of an FHA Back to Work loan

  • Flexible credit score limits, but must be current and re-established responsible credit history for 12 months following the loss of home/bankruptcy
  • Must be able to provide documentation of mortgage/ credit problems resulting from financial hardship
    • Hardship must derive from job loss or 20% decrease in income for at least 6 months and bust be verified
  • Get a mortgage with only 3.5% down payment
  • Thirty days prior to purchasing a new home, a borrower must take the required HUD approved housing counseling (offered through various companies, i.e. springboard, and can be done over the phone for a nominal fee).


Down Payment3.5% of the final loan amount
Terms10, 15, 20, 25, 30 years, fixed & ARM
Credit Score640* minimum
Mortgage InsuranceYes, one-time, up-front and monthly
Maximum Loan LimitYes, varies by county
* Unless approved by FHA Choice Manual Underwrite Process

What do I need to provide a Loan Officer to see if I can qualify?
A Loan Officer will have to pull credit and will need the following documents to get you pre-qualified to purchase a home:

  • Last two (2) years tax returns and W2 forms
  • Most recent two (2) pay stubs
  • Most recent two (2) months bank statements i.e. Checking, Savings, or 401K
  • Detailed letter explaining your financial hardship
  • HUD settlement statement, if short sale occurred
  • Bankruptcy document and discharge, if applicable
  • Foreclosure deed, if applicable

What is the minimum down payment for an FHA Back to Work loan?
3.5% is the minimum required down payment, and it can be gifted.

What kind of home can be purchased through this program?
FHA allows for the purchase of a 1-4 family owner-occupied home.

Do I have to have owned a home previously to qualify?
No. First time home buyers can also qualify for the Back to Work program.

Should I have a home picked out and/or be under contract before getting pre-qualified?
No. Borrowers within this program should be pre-qualified and must complete the HUD approved housing counseling 30 days prior to applying for a mortgage.

Questions? Get started now, and a licensed Loan Officer will reach out to you shortly.