Approximately 5 million Americans lost homes to foreclosure and another 2.2 million to short sales since the Great Recession of 2008.

Whether through loss of job or as victims of nancing, the penance for these former homeowners before buying property again ranges from three to seven years.

Conventional lenders require seven years after a foreclosure to re-qualify and between two and four years for short sales depending on down payment and whether the loan is sold to Fannie Mae or Freddie Mac. VA and FHA require three years from either short sale or foreclosure.

Many of these former homeowners facing rising rents and eager to get back under their own roof are becoming a new wave of boomerang buyers in our marketplace.

But under an already tight lending environment, will a buyer on the rebound with a blemished past really stand a chance at qualifying for The answer is yes, and FHA is rolling out a new program that may help a buyer who has experienced a short sale or foreclosure get back into a home sooner.

The Federal Housing Administration’s “Back to Work” program allows a buyer to qualify after just 12 months following a short sale or foreclosure and is expected to help an estimated 2.5 million buyers nationwide purchase a home again two years ahead of schedule.

Buyers who can document that they lost their home due to an extenuating circumstance, such as unemployment or reduction of household income by at least 20 percent, may be eligible for the Back to Work program.

Those who qualify can receive financing 12 months after a short sale, foreclosure, deedin lieu of foreclosure, or bankruptcy if they have a minimum 3.5 percent down payment.

Qualified applicants must complete housing counseling, dem onstrate that they’ve re-established credit with a 12-month record of ontime rental housing payments with no delinquencies, and not have been 30 days late on more than one non-housing loan payment.

If an applicant still has open collection or judgment accounts, then a “capacity analysis” will be done to see if those creditors can be repaid.

The backtoworkprogram.org website offers checklists and a directory of participating lenders. Applicants should be prepared to face a lengthier underwriting process, but the program can drastically cut their wait in qualifying for financing to purchase again.

Applicants should be prepared to show pay stubs, bank statements and tax returns, but shouldn’t be hesitant about approaching a lender.

California had the biggest share of boomerang buyers in 2013, with Riverside/San Bernardino and Los Angeles being the No. 1 and No. 2 markets in the nation.

These homebuyers now have an opportunity to get off the sidelines and embrace a more responsible approach to home ownership.

After all, America is a land of second chances where you can completely lose everything, rebuild, and be successful again. And have another shot at the American Dream.

Adriana Donofrio Podley Properties Glendora 626 914-2904 adrianad@podley.com