Yes, when you have had a bankruptcy, foreclosure, or short sale it may seem like owing a home is never going to happen again but that is not true. I think most people that have had that “negative financial event” have no idea that there are options for them in the market today.
Granted there are some strict guidelines when it comes to Fannie Mae but they are not the only game in town.
Did you know that FHA allows you to purchase a home 2 years after a bankruptcy and 3 years after a foreclosure.
VA allows you to purchase a home 2 years after a foreclosure and bankruptcy.
FHA guidelines will also allow you to purchase a home the day after you have had a short sale if you were not more than 30 days late in the 12 months leading up to the short sale.
The bottom line is there are options and some are even more aggressive than the government loan programs.
I currently work with an investor that will finance somebody one day after a bankruptcy, foreclosure, or short sale.
Granted if you are financing a property the day after a “negative financial event” you are going to have to come up with a larger down payment and the rate will be higher than the standard loan programs, but the moral of the story is there are options.
Before you decide that you can’t purchase home and you are going to be a renter for the rest of your life contact a licensed mortgage professional and get some solid advice on your options. They may tell you that you don’t qualify today but a real pro will tell what you have to do so you will qualify in the future.