Buying a Home After Extenuating Circumstances:
Get Started Early
Presently there are many people that previously suffered a Short Sale, Bankruptcy, or Foreclosure during the housing crisis becoming eligible to purchase a home once again ...
The waiting periods surrounding each financial hardship varies, depending upon the mortgage program being utilized for the new purchase.
The waiting periods can range from:
- 2 years (Conventional Loans AFTER Extenuating Circumstances)
- 2 years for VA Loans
- 3 Years for FHA Loans
- year ... if meeting FHA's Back-To-Work Program Parameters (extremely rare cases)
Extenuating Circumstances are defined as:
Nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.
Proving those extenuating circumstances is not always easy. And the criteria used to do so is fairly strict.
So those pursuing this path to purchase must understand: The success of their Mortgage Application rests upon the details of their personal financial scenario and credit history ... and their ability to fully document it.
For those that lost employment or income: The detailing of past employment can sometimes prove extremely challenging.
Why? For one, former employers may no longer be in business.
Or even if past employers still remain in business, they may be unwilling to provide written documentation or explanation of their company's financial or employment history. I just had such a case. No amount of pleading on my behalf (or the former employee's) could change the company's stance regarding this matter.
Other recent clients had an extensive number of jobs within a two-year period of time. Yes, the positions they maintained were all within the same line of work, which is mandatory and proved helpful.
But ... proving the existence of continuous employment throughout that period of time ... for 2 people ... was much like putting a large difficult puzzle together. The act of documenting the large number of jobs ate-up way more time than is typical during their processing.
The point I want to make is:
Should you be hoping to buy a home in the future ... and be someone that experienced any of the financial circumstances mentioned above ... don't wait. Talk to me now.
Because truth is: Although this type of purchase and financing is often successful, it demands a higher and more detailed mortgage processing. One that can take time.
Buying a Home After Extenuating Circumstances: Get Started Early. The earlier we talk, the earlier we can get started on the work that needs to be accomplished. And the better I can place you on the path to your successful financing and fluid home purchase.
* Hoping to buy a home in the greater Chicagoland area? Contact me today. I'll put my 37 years of mortgage experience and expertise hard to work on your behalf.
I can be easily found at:
Mortgage Lender - NMLS #216987 - IL Lic. #0006220 - WI Licensed
American Portfolio Mortgage Corp.