Foreclosure satisfied 6 months ago and they still bought a house?

  I suppose that I am a loan officer first, but I see myself more as an educator.  My figuring is that if I educate people on how our industry works and what products are available, then they will do a better job themselves with their clients.

  Now here comes my customer:  640 middle score, Bankruptcy discharged in June of 2010, they were foreclosed on, their home did not sell at auction until July of 2012 and they wanted to buy with no money down (of course).  So the question is asked -- is there a mortgage which someone could qualify for if they had a foreclosure satisfied less than one year ago?

  Survey SAYS -- of course.  The scary thing is that there are so few lenders who know about this loan being available and even fewer realtors!!  It's a No Money Down purchase loan in which a recent bankruptcy or foreclosure does not automatically eliminate you from getting qualified.

  Let me describe the loan for you -- it's a normal mortgage (no different than conventional, FHA or VA).  The subject property should not reside on more than 5 acres, it should be zoned "residential", there should be no outbuildings on the property and the property should not have additional income generating uses.

  The two biggest limitations on this 'regular' mortgage loan is that there are 1) Income restrictions (a household cannot make more than a certain amount of money) and 2) There are location restrictions.

  The loan is a USDA loan.  For all of those out there thinking, ok, it's a farm loan, boy are you losing business.  It never fails.  I would say that 7 out of 10 realtors whom I even mention it to will say that they do not sell farms.  My response is always the same -- I do not do farm loans.  It's a REGULAR mortgage loan.  Nothing fancy.  Nothing different.  Oh, did I remember to mention that collections are not required to get paid off either?? 

  Call me or email me to find out more.  Keep this in your back pocket the next time your lender tells you that the customer had bankruptcy, foreclosure or collections which disqualified them.  I promise that there are qualified USDA buyers which realtors are missing out on every single day because they are talking to the wrong people and not remaining educated on the mortgage products still available today.