1st Alliance Lending, a full-service mortgage banking and servicing company offering Federal Housing Administration (FHA), Veterans Affairs (VA) and conventional mortgage products, has launched a direct-to-consumer campaign to reach underserved home buyers who may be eligible for the new FHA ‘Back to Work’ home loan program.
Launched last August, the FHA's Back to Work – Extenuating Circumstances program shortens the waiting period for home buyers who have gone through foreclosure or bankruptcy but want to buy a home again.
To qualify for the program, home buyers need to show documentation proving that they suffered an economic event that resulted in a loss of 20% or more of their income for a period of six months or more, and that they have fully recovered financially from this event. In addition, participants must have received counseling from a U.S. Department of Housing and Urban Development (HUD)-approved agency.
Providing a borrower qualifies, he or she can be approved for an FHA-backed mortgage again in as little as a year – as opposed to the two to seven years it would normally take, depending on the degree of damage to a borrower's credit.
‘Through the new FHA rules, borrowers with prior foreclosures or short sales are allowed to apply for FHA financing after just one year, rather than being forced to wait three years,’ explains Brian Faux, chief operating officer, 1st Alliance Lending, in a release. ‘This is a huge opportunity for those former homeowners who suffered economic hardship during the recession but are now on the road to recovery.
‘At 1st Alliance Lending, our success qualifying people for government-backed programs is deeply rooted in an individualized, prudent underwriting process that looks beyond credit scores, to real people and real life situations,’ Faux adds. ‘We consider the story of each borrower rather than underwrite to a computerized checklist. In fact, close to 85 percent of our underwriting is done manually which most lenders do not or cannot offer.
‘The relationships forged with our customers go way beyond the sale, as we retain the servicing on our loans and the principles that guide us; our focus on real people and real life is ever present from closing day to the last payment,’ he continues. ‘We understand that many borrowers have had unpleasant experiences with mortgage lenders in the past, and we work hard to ensure their experience with 1st Alliance Lending is not more of the same. 1st Alliance Lending is more than a mortgage company; we are their partner in sustainable home ownership.’
The release does not provide specifics about the campaign such as which channels will be used to reach out to borrowers.