A couple of people asked me about buying a home after foreclosure or short sale. We have a loan that a yea r after the event even a Bankruptcy we can offer a mortgage. You must demonstrate you paid your rents on time past twelve months. With 12 months reserves we can loan up to 85%. OR eight percent with three months reserves
Home Again product is a great loan for Borrowers to get into the market now.
Usual waiting periods are as follows:
Foreclosure: 7 years conventional loan, 3 years FHA 2 Years VA and 3 years USDA.
Short Sale: 4 years conventional, 3 years FHA, no wait VA, 3 years USDA
Rates are higher on this product than government loans.
The investor expects as soon as the �waiting period� ends the loan is running off hence the higher rates. DON�T LET THIS SCARE YOU AWAY.
Sometimes paying a higher rate for THE RIGHT PROPERTY (kitchen, backyard, pool, sunset etc�) TODAY beats buying the JUST OK one in the future. Limited supply means you have to buy when the RIGHT PROPERTY comes on the market. Yes you might pay $18,000 in higher interest for 12 months (which is tax deductible). So what, it beats buying an inferior property in 12 months and having to improve it $45,000 because there is nothing on the market.
Sometimes paying a higher rate for THE RIGHT PROPERTY (kitchen, backyard, pool, sunset etc�) TODAY beats buying the JUST OK one in the future. Limited supply means you have to buy when the RIGHT PROPERTY comes on the market. Yes you might pay $18,000 in higher interest for 12 months (which is tax deductible). So what, it beats buying an inferior property in 12 months and having to improve it $45,000 because there is nothing on the market.
There are more people in the penalty box than you think. Just because your borrower didn�t lose their primary residence doesn�t mean that pesky foreclosure on that vacation home in the desert, mountains or lake isn�t hindering their ability to upsize or downsize.