The Federal Housing Administration has issued guidance for its new “Back to Work” program that could open the door for borrowers who lost their jobs and their homes during the recession to qualify for a FHA-insured mortgage.

“Borrowers that may be otherwise ineligible for an FHA-insured mortgage due to FHA's waiting period for bankruptcies, foreclosures, deeds-in-lieu and short sales, as well as delinquencies and/or indications of derogatory credit, including collections and judgments, may be eligible for  a FHA-insured mortgage,” according to Mortgagee Letter 2013-26.

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