Buy Again After BK, Short Sale, Foreclosure

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After you read this page,  you will know what it takes to buy a house after a major Credit Event. Text me with any questions. 702-326-7469 –  Dan

Get a Home Loan immediately after a major Credit Event (i.e. Bankruptcy, Short Sale, Deed in Lieu, or Foreclosure)
15% down – 660 score required. No Mortgage Insurance.
20% down – 620 score required. No Mortgage Insurance.
30% down – 580 score. No Mortgage Insurance.

If your major Credit Event happened more than 2 years ago, the down payments are lower.
10% down – 680 score. No Mortgage Insurance.
15% down – 660 score. No Mortgage Insurance.
20% down – 620 score. No Mortgage Insurance.

Allowed Property Types: 
1-4 Units, PUD, Warrantable (Approved by Fannie Mae) and Non-Warrantable Condos, Condotels, 1-Unit Cooperative.

The minimum loan amount is $100,000. 100% of the down payment can be a gift from a relative. If the gift comes from a non-relative then borrower must have 5% of their own money.
Primary Residence or Vacation Home. No rental properties on this program. Your options are: 30-year fixed rate OR 5/1 Adjustable. The maximum debt to income ratio can be as high as 50-55% in certain cases. You will need money in the bank to cover at least 3-months of the payment. Two Appraisals are required for loan amounts over $1,500,000. Clean recent rental history. _______________________________________________________

1-Year after Bankruptcy/Short Sale/Foreclosure loans are now available with 3.5% down.
a. Your credit issues were the result of a Loss of Employment or a loss of Income beyond your control. You must show that the household income was reduced by 20% or more for 6-months or longer.
b. The borrower has demonstrated full recovery from the event
c. The borrower has completed a one-hour housing counseling session. Ask for details.
d. 640 minimum credit score, 3.5% down payment.
e. A 12-month clean rental history


Waiting Periods for FHA and Conventional
(Typically, these loans have the best rates, so if you meet these waiting periods, you are golden)

2 years after Ch. 7 Bankruptcy (must have re‐established some credit after BK)
Financing available for borrower in the middle of a Ch. 13 BK (must have court approval and most recent 12 months installment payments must be on time)
3 years after Foreclosure and 3 years after Short Sale (if there were any 30 day mortgage lates prior to short sale)

Standard Conventional Financing
4 years after Ch. 7 Bankruptcy
2 years after Ch.13 Bankruptcy discharge (4yrs after dismissal)
4 years after Short Sale
7 years after Foreclosure

Talk or Text – 702-326-7469

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