Can I buy after saying goodbye to my home?

A select group of buyers are waiting longer than necessary to re-enter the housing market after a short sale or foreclosure.  This is understandable as most loan programs require a minimum wait of 3 years after a foreclosure and some up to 5 years!  The one exception has been if the borrower did a short sale and remained current at all times (some lenders will not allow this in a short sale in order to “punish the borrower”) they possibly could get an FHA loan more immediately.

That is now changing.  The market place is responding to the times and there are new “portfolio” loans (loans made by a bank with their own money – gasp) that are now available to those who wish to return to the housing market sooner after a foreclosure or short sale.  While these “Second Chance Loans” are not perfect for everyone, for some this new program can solve a problem – allowing the buyer to jump back in to the market place quickly while values still remain aggressive.

Here are the primary criteria:

Must have a minimum of 25% down

The housing payment must be under 50% of their income

Borrowers must demonstrate the ability to make the loan payment

Interest rate based on total circumstances (expect above market rates)

Your “troubles” must be behind you (financial troubles)

Think this might be a loan that you or someone you know needs?  As always it is best to speak directly with the lender.  Simply email us so that we can connect you at Russell@nohasslelisting.com