The Back to Work FHA Loan Program

FHA recognizes hardships faced by these borrowers, and realized that their credit histories may not fully reflect their true ability to repay a mortgage.

The Back to Work FHA Loan Program is an option for some borrowers that have experienced an economic hardship.

FHA is allowing for the consideration of borrowers who have experienced an Economic Event and can document:

  • Certain credit impairments were the direct result of a loss of employment or significant loss of household income beyond borrower’s control.
  • The borrower has demonstrated full recovery from the event
  • The borrower has completed Housing Counseling completed within at least 30 days prior to application but no more than 6 months prior to application date.

Economic Event is any occurrence beyond borrower’s control that results in loss of employment/ income which causes a reduction in the borrower’s household income of 20% or more for a period of at least 6 months.

Recovery from Economic Event is the re-establishment of satisfactory credit (defined in detail as listed in FHA MEMO 2-13-26, page 5) for a minimum of 12 months. 

Satisfactory credit requirements include, but not limited to, no mortgage late payments, installment, revolving account or major derogatory credit issues within the last 12 months.  If a mortgage term was modified, as long as borrower has made timely payments according to modification agreement this may be acceptable.

  • Borrower exhibited satisfactory credit prior to the Economic Onset
  • Borrower’s derogatory credit occurred after the Economic Event
  • Borrower re-established credit for last 12 months


v  Collection/Judgments need to be verified as result of Economic Event

v  Foreclosure/Short Sale/Bankruptcy:  A minimum of 12 months must have passed since the date of Foreclosure/Short Sale/Bankruptcy  and this must be documented it was the result of Economic Event.

(Chapter 13 Bankruptcy requires a letter from the courts to proceed with a mortgage loan)

Satisfactory Housing Counseling – Borrower must receive homeownership counseling by a HUD approved housing counseling agency.  Housing Counseling may be in person, via phone, via internet or other approved methods by HUD.  List of agencies can be found at

*Please note: Each lender/bank may have specific overlays. This is intended for educational information only. Additional documentation and guidelines apply.





Melinda Movick
Mortgage Advisor
Frontier Mortgage
2012 and 2013 Five Star Professional Service Award
Providing Personalized Service to Every Client
Fax: 1-888-545-4808
NMLS ID: 253071
MO ID : 340-MLO

Sorting documents and decluttering your home is a liberating spring experience.

Spring is here, our favorite season. Homebuyers and sellers emerge to begin different lives in their new homes and neighborhoods. Especially for sellers, paper purging is an excellent way to begin de-cluttering your home and getting it ready to show.

What is expendable and what should you keep? According to the AAA Midwest Traveler, you can shred utility bills, phone bills and credit card statements after you pay them. Pay stubs, bank statements and medical records can go away in 12 months. Exceptions could be if you have an ongoing medical problem or a working through a claim or reimbursement.

Further down the road, keep tax records, real estate transaction records, and documents related to home improvements for six years.

For your archives, keep insurance records, IRA contribution documents, until you withdraw the money, and active warranty documents.

Other paper you can throw away include outdated warranties for items you no longer have, outdated instruction manuals, which, considering the speed of technology, could be outdated in three months; old annual reports and investment newsletters, cancelled insurance policies and outdated wills and trusts, but only if you have a new will created.

Before you throw documents away, make sure your identity is unrecognizable. This includes your name, social security number, birthdate, account numbers and passwords. The best way to do this is to use a shredder to thoroughly destroy documents.

After you tackled this project you’ll be ready to begin decluttering your home to show at its best advantage. Believe us, it’s liberating!

Appreciation Campaign

Everyone likes to feel appreciated.  We have a tendency to take our sphere of influence, clients and ambassadors for granted.  It can take 20 minutes per week to put together an “Appreciation Campaign” for a specific group of individuals that have the ability to make a difference in your business.  A simple lunch may take a couple hours out of your day, and yet it is a great opportunity to get quality time and discuss how you may help each other grow your businesses.

Your close sphere of influence – These are the individuals you come into contact on a regular basis that can be a referral source for you.  Take the time to reach out to them for a coffee, lunch or after work appetizers.  This is the perfect opportunity show this person they are appreciated and worth your time.  During this time you will want to make sure you show interest in them, their family’s wellbeing, how you can help provide referrals and/or referral sources to them.  This lunch is not about you and your business.

Your clients – Instead of sending out a newsletter the client may or may not read, send your clients something of benefit to them.  Ask a local restaurant, car wash, or movie theatre to provide you with a discount and share this discount in  an emailed coupon.

Your Ambassadors – These individuals are your cheerleaders.  Even though you may not have frequent contact with this person, he/she will always refer you with gloating accolades.  The ambassadors are typically influential, trustworthy and therefore when they share that you are their “go to person”,  you get the business.  Your act of appreciation to them will be received with much gratitude and a lasting positive impression.  Typically ambassadors tend to be busy.  A “Thank you” card stating they have helped your business grow and that you are incredibly thankful is just the type of recognition that will make their day.

Appreciation can be simple, inexpensive and does not have to require a lot of time.  However, the long term benefits and stronger business relationships can have a lasting impact on your business.



Melinda Movick
Mortgage Advisor
Frontier Mortgage
2012 and 2013 Five Star Professional Service Award
Providing Personalized Service to Every Client
Fax: 1-888-545-4808
NMLS ID: 253071
MO ID : 340-MLO

Hop To It!

It is a favorable time to hop into the buying market to purchase your new home!


A key to purchasing your new home is moving forward before rates increase.  A 1% increase in the rate reduces the amount a buyer can afford by 15%.


Interest rates have been artificially low due to the Federal Reserve starting the Quantitative Easing: QE1 was initiated in November 2008 and is currently still active.  The Federal Reserve has been purchasing Mortgage Backed Securities to keep rates low and help the housing market recover.  They have recently announced they will begin tapering this program in 2014.  The mere discussion of this has caused interest rates to increase over the last month.


Taking a look at history, from 1970 until the 1990’s, the 30-year mortgage rate was above 10 %.  The rate was between 8% and 10 % for an additional 11 years. The 30-year rate did not drop below 6 percent for an extended period until early 2003 and then stayed near the 6 percent rate until the financial crisis in 2008.  That gives 22 years of rates over 8%  out of the 40-year period.   Rates will increase and therefore it is a favorable time to align yourself with a knowledgeable local Realtor and Mortgage Lender.

Some Experts say the large banks that dominate the mortgage market are flexing their muscle by keeping rates at current levels regardless of a positive move in the Bond markets on a given day; arguing the gap reflects increased regulatory costs, risks, new realities of mortgage making and their increased cost of maintaining these regulations.

Taking into consideration we have had record low interest rates for a couple years, and are still currently at record low levels, it is time to purchase your new home!

Frontier Mortgage

Melinda Movick ~ Mortgage Advisor ~ 314-960-9084


Who will buy your home?

Who will buy your home and what do they want? A new study shows that younger buyers are active in the market and believe that homeownership is still a good thing.

Just out is the 2014 National Association of Realtors® Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent homebuyers and sellers. Young homebuyers remain optimistic and see their home as a good investment. In fact, eight out of 10 recent buyers considered their home purchase a good financial investment, ranging from 87 percent for buyers age 33 and younger, to 74 percent for buyers 68 and older.

The largest group of recent buyers is the Millennials, those born between 1980 and 1995. The median age of this group was 29, and the median income $73,600. They accounted for 31 percent of recent purchases and most likely bought a 1,800-square foot home costing $180,000.

The previous generation, Gen Y, buyer is 40 years old, had a median income of $98,200, and purchased a 2,130-square foot home costing $250,000.

What do they want?
The study indicates a preference toward a single level home with a garage and a basement. Central air conditioning is a must and a walk-in closet in the master bedroom is desirable. Also important to the Millennials:

  • Quality of the neighborhood
  • Convenient to job
  • A top-notch school district
  • Three or more bedrooms
  • Three full bathrooms
  • Energy efficient heating and cooling, appliances and lighting.

And, regardless of age, most homebuyers began their search on the Internet, then chose a real estate agent based on referrals from friends, family or neighbors. The younger generation relied more on the agent to explain the home buying process and the many unfamiliar real estate terms.

It’s heartening to see that young buyers haven’t lost their desire to be homeowners. This group is beginning to present the next generation foundation, despite the last few difficult years. That’s good news for those home sellers who are getting ready to market their home this spring.