Buying a Home After Foreclosure 2019 Update

By
Mortgage and Lending with Change Home Mortgage NMLS 1019442

Welcome to 2019. We are another year past the financial meltdown that left many well intended people with Foreclosures on their records. New programs keep coming out that are changing the dynamics of getting a mortgage after a Foreclosure. 

I will post another blog specifically for getting a mortgage after Short-Sales and Bankruptcy , but for now this is focused on loans after a Foreclosure. 

 

Portfolio Mortgages (Also sometimes referred to as Non-QM) 

These are the most flexible mortgages to get after a Foreclosure. Some programs do not require a wait period while others have a specific waiting period. The longer the waiting period , the less downpayment is required and rates are better as well. 

Buying a Primary or Second home after Foreclosure - 

  • No Wait after Foreclosure - There are programs with 15% down required. Your credit can be pretty beat up as well with FICOs down to 580. These programs will have higher rates, but are very flexible. 
  • 2 years after Foreclosure - These programs require at least 10% downpayment . Rates are a little better than the fresh start programs, but still higher than conventional. 
  • 4 years after Foreclosure - Programs are available with as little as 5% downpayment. Your credit needs to be pretty clean otherwise. These rates are the best and can be very competitve. 

Buying an Investment Property after Foreclosure - 

  • 2 years after Foreclosure - Mortgage programs are available with 15% downpayment. You'll need substantial reserves and be prepared for a rate that's not pretty. 

 

Jumbo Mortages

  • 7 Years after Foreclosure - This is the typical wait time , although it can vary. 
  • Not allowed - Some Jumbo investors do not allow any Foreclosures in the past regardless of waiting
  • No wait programs -I have detailed some of the options to get a Jumbo Mortage after Foreclosure in the "Portfolio Mortages section above. These programs work for Jumbo loan amounts as well. 

Conventional Loans

 

FHA 

  • 3 Years after Foreclosure - the standard waiting period after a Foreclosure
  • No specified wait - Manual underwriting can be done with extenuating circumstances if credit is re-established

VA

  • 2 Years after Foreclosure - Typically the waiting period

 

These are the general outlines , but feel free to contact us with questions. 

Craig Bosse

NMLS 1019442

(925) 322 - 0436

Craig.Bosse@caliberhomeloans.com

 

 

 

 

 

Comments (2)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Craig, great advice, and we are seeing some returning to the rest estate market after they had financial issues in 2008.  

Jan 29, 2019 06:46 PM
Craig Bosse

Thanks Joan for the comments. It's getting a little easier for them. Back when I started doing these types of loans it was 20% down minimum until you were 3 yrs out at least. 

Jan 29, 2019 07:01 PM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Craig,

Sounds like having a foreclosure on your record is not quite as bad as being self-employed. Seems like we always need healthy down payments to make the cut.

Jan 29, 2019 07:15 PM
Craig Bosse

Hi Dorte,


It just depends. Theres nothing different about self-employed vs. w2 employee unless you don't show income. We do have programs that average in current P&Ls that are helping people qualify. 


Thanks for your comments!


 


Craig 

Jan 29, 2019 07:20 PM