I go to a lot of sales meetings withRealtors and explain the different types of financing we do in house. I always get the question of how long after a BK, foreclosure, or a short sale can a client buy a home. FHA and VA are definitely the easiest to qualify after these circumstances with a wait period of 3 years. VA will actually only have a 2 year wait period. Lets remember if the client didn't go late on the short sale we can fund day 1 after the sale closes. This often happens on a divorce or a relocation. Conventional financing will have a 7 year wait after foreclosure and 4 years after a short sale.
Where I believe guidelines are getting looser is with private mortgage insurance loan(PMI). Most Mortgage insurance companies have lowered their credit scores from 720 to 660 now and lowered their down payment requirements from 10% down to only 3% down. The best is to do a second home with only 10% down. So my jury says yes money is flowing a bit more than it was 2 years ago. So go sell a house and get that buyer to me to fund in 20 days.
Comments(1)