Borrowers who suffered significant financial hardships in recent years are not completely 'out' when it comes to trying to buy homes again, says Heather Shanahan, a representative with housing counseling agency Springboard.
In fact, she says her company is playing a key role in helping qualified borrowers move through the Federal Housing Administration’s Back-to-Work program, which shortens the waiting period for once-distressed or first-time homebuyers who want to get back into properties.
All future homeowners have to show is that they’ve recovered from a financial hardship and received counseling from a HUD-approved agency. If they meet these qualifications, the borrowers can buy properties once again in as little as a year.
Luckily for Springboard, which is fully known as Springboard Nonprofit Consumer Credit Management, the agency is a HUD-approved counselor, which allows it to participate in these initiatives.
"The Back to Work program is a great opportunity for us to help those impacted by the recent housing crisis," Shanahan said. In some cases, the initiative is helping borrowers get into their first homes, while at other times, focusing on getting former homeowners back into properties.
"Our goal in our counseling sessions is to enable the borrower to better understand their loan options and the obligations,” Shanahan told HousingWire. The agency also focuses on assessing the strength of household budgets and works on creating solid financial plans for its participants.
"We provide the borrower with a customized action plan," Shanahan told HousingWire.
Springboard’s Priority Pre-Purchase Counseling program works with borrowers, giving them access to certified housing counselors—a requirement for the innovative HUD program.
It's a requirement for qualified homeowners to complete their counseling using a pre-approved counseling agency 30 days prior to applying for an FHA mortgage, Springboard noted.
Those who meet these requirements receive a certificiate of completion, which Springboard is uniquely equipped to provide via electronic delivery to keep the process moving along.