The Back to Work program, which began in August 2013, reduced post-foreclosure, bankruptcy, and short-sale waiting periods on FHA loans. If there was an underlying extenuating circumstance you may be able to qualify for a new loan in as little as 12 months.
To qualify you must have suffered an “economic event” defined by FHA as an “occurrence beyond the borrower’s control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower’s Household Income of twenty (20) percent or more for a period of at least six (6) months”. It’s important to note how strict this definition is. If you suffered 5 months of job loss and/or if your income has been reduced by only 19% for over 6 months, you will not qualify for this program.
You should also know that the circumstances leading to the economic event must have been temporary in nature and not likely to repeat. Third party documentation backing up the details of the “economic event” will be required as well.
More information can be found at: http://portal.hud.gov/hudportal/HUD?src=/federal_housing_administration
