Can I Buy After a Short Sale?

Yes, but there is a waiting period for each type of mortgage loan, except one loan type which I will get into later in this blog.

You also need to build your credit score back up by paying all bills on time and keep inquiries off your report. Inquiries from anywhere that you have applied for any kind of financing or leasing.

  • FHA loans are a wait period of three years when putting a down payment of 3.5%
  • Conventional loans wait period is four years when putting down a minimum payment of 5%
  • Conventional Loans wait period is two years with a minimum down payment of 10% and prove extenuating circumstances beyond your control.
  • USDA loans wait period has different wait periods that depend on the short sale circumstances at that time.

You can find out more detailed information about USDA Mortgage Loans by clicking on this link.

https://www.usdaloanpro.com/blog/2016/04/01/can-you-qualify-for-a-usda-loan-after-a-short-sale-2/

  • Fannie Mae HomeReady loans are four years when putting down 3%
  • VA loans are a wait period of two years and the down payment will still be 0%
  • Non-QM loans (Non-Qualified Mortgage) are the very next day. This is any mortgage loan that doesn’t comply with the Consumer Financial Protection Bureau’s existing rules on Qualified Mortgages (QM). Usually this type of mortgage loan helps buyers who are not able to prove they are capable of making the mortgage payments. You generally have to have a high credit score.

You can find out more detailed information about Non-QM Mortgage Loans by clicking on this link.

https://angeloakms.com/breaking-non-qm-correspondent-lending/

 

 

 

 

Can I Buy After a Foreclosure?

Yes, you can buy after a foreclosure, BUT with every mortgage loan types there is a wait time period that begins after closing, and the time period depends on the type of financing you had on the house.

You also have to have repaired credit to meet the credit requirements of the mortgage loan you are applying for.

Cash would be any time.

FHA (Federal Housing Administration) of three years is the minimum amount of time you have to wait. However, if you can prove the foreclosure was from a one time uncontrollable situation, FHA lenders MAY reduce the wait period to two years.

  • You have to put 3.5% down payment with a credit score of 580.
  • You have to put 10% down payment with a credit score of 500.

The lender may also require you to go through HUD Counseling.

Conventional loans backed by Freddie Mac or Fannie Mae is a seven years. This is the longest wait time period.

  • You have to put 5% minimum down payment. Percentage could be as high as 20%. There are variables that include credit score, conventional backing, points and so on that the lender will dictate.

Fannie Mae loans are seven years wait period, but you may get approved in three years as long as you can prove to the lender that your foreclosure was due to a one time uncontrollable situation. (Extenuating Circumstances).

  • You have to put 20% down payment with a credit score of 620.

Freddie Mac loans are seven years wait period, but you may get approved in three years as long as you can prove to the lender that your foreclosure was due to a one time uncontrollable situation. (Extenuating Circumstances).

  • You have to put 20% down payment with a credit score of 620.

VA (Veterans Affairs) loans are two years wait period.

  • You put $0.00 down payment with a credit score of 620.

Some Tips For You To Work On Before Being Approved For a Mortgage After Foreclosure

Paying all credit card debt

Paying your credit card debts down or completely off is one of the major ways to raise your credit score and prove to the lenders you are now financially able to pay your bills. Once you’ve paid off your credit cards you should see the change in your credit score within a month.

It is wise not to cancel your cards though, because these credit cards show the lender that you have an established trusting relationship with other peoples money. Cancelling your credit cards cancels that out.

 

Don’t apply for any other financing

Don’t increase your debt burden before applying for mortgage financing. This includes buying or leasing a car, buy now pay later furniture and appliances, rent to own furniture and appliances. Your debt-to-income ratio is one of the most important factors lenders look for when determining your eligibility for a mortgage.

 

Avoid any other negatives on your credit report.

After your foreclosure, paying all your bills and loan payments on time is crucial. You don’t want to begin the waiting for negative remarks to be removed again.

Collection accounts may remain for 7 years and 6 months from the date you first fell behind with the original creditor leading up to when the account was placed in collection.

 

New Eco-Star Home? Can I afford it?

New Eco-Star Home? Can I afford it?

If you have a minimum credit score of 580 then absolutely yes.

As you know, it’s a sellers market and house prices have increased significantly. For what most property prices are being sold for you can buy brand new for as low as $161,000 (not including the lot). They will build on your lot, or you can chose one of theirs.

Certified eco-star energy efficient homes are not only cheaper than other properties to live in, they are high performance spacious, well laid and thought out floor plans and have many upgrades and appliances included that many builders charge extra for.

 SAVE MONEY NOW

SAVE EVEN MORE MONEY LATER

USE 1/2 THE ELECTRICITY OF TYPICAL HOMES IN AN ECO-STAR HIGH-PERFORMANCE HOME WITH BUILDING ENVELOPE ENGINEERED FOR 160 MPH WINDLOAD

  • Energy efficient heat pump water heating system
  • R-38 ceiling insulation
  • R-7 wall insulation with double furring strips
  • 16 SEER air-conditioning unit
  • Digital programmable thermostat
  • Solar powered attic ventilation fan
  • Radiant heat barrier between ceiling and roof
  • Kitchen and bath fans ventilated to outside
  • Air conditioner unit located in conditioned space
  • Pressure tight tested air ducting
  • LowE double pane windows
  • Deluxe energy star rated appliances
  • 100% energy efficient CFL lighting
  • 4 to 5 ceiling fan outlets as per plan
  • Sealed adhesive roof underlayment
  • Exceeds FPL BuildSmart specifications

FEATURES VARY BY LOCATION

Eco-Star High Efficiency Homes will save you half off your electricity bill.

According to the US Department of Energy, the HERS rating is 130 for the average used home and 100 for a new home.

The HERS rating for a typical High-Performance home is less than 60. This number is verified by an independent certified Energy Rate and it is less than half of the average used home (55% less).

Resale values of a High Efficiency home is greater than regular resale homes.

Saving money month after month along 

with Comfortable living!

I can help (depending on your credit score and financing options) get you into a brand new certified eco-star home, where your electricity bills are a fraction of what you pay now.

You will be impressed beyond belief.

Application:
When you are ready to apply for a loan, it will be easier for you and the lender to have these things ready.

Loan Checklist:

  • Address to your place of residence (past two years)
  • Social Security numbers
  • Names and location of your employers (past two years)
  • Gross monthly salary at your current job(s)
  • Pertinent information for all checking and savings accounts
  • Pertinent information for all open loans
  • Complete information for other real estate you own
  • Approximate value of all personal property
  • Certificate of Eligibility and DD-214 (for veterans only)
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
DISCLAIMER: We do not endorse any website that you click on, on our website. We want you to be fully informed of the process so that you can make an informed decision on what is right for you.

 

 

 

USDA Mortgage Loan (Residential)

USDA Mortgage Loan (Residential)

Is a USDA (United States Department of Agriculture) Mortgage Loan right for me?

Very few people don’t know about the USDA Mortgage loan. Most go for FHA or conventional.

  • Conventional 5% to 20% down.
  • FHA 3.5% down.
  • VA 0% down.
  • USDA 0% down.

The USDA Loan is available to anyone that meets income and credit requirements.

USDA, or the United States Department of Agriculture, designed this loan to pull the population out of large metropolitan cites and into surrounding areas. USDA eligible properties are typically located outside of city limits, in suburbs or rural areas. The USDA Guaranteed Loan is not meant to finance farms rather they are geared towards the standard single-family home.

This zero-down, 100% financing home loan has income limits, and property eligibility requirements, however you don’t have to be a first time home buyer to take advantage of this great home mortgage option.

Another USDA Loan advantage is that the USDA Loan’s mortgage insurance fee is just 0.35% monthly – nearly half of what is charged on a conventional loan and a quarter of what is charged on FHA. There are no loan amount limits like FHA, instead the applicant’s income determines the maximum loan size. USDA Loans also allow for the buyer to roll their closing costs into the mortgage up to 100% of the appraised value of the home.

Copied and pasted from USDAloans.com website

  • Less than perfect credit score (No Problem)
  • Chapter 7 bankruptcy (No Problem after 3 years)
  • Chapter 13 bankruptcy (No Problem after 1 year)

To see if you qualify, and for more information, click on this link now.

https://www.usdaloans.com/

Application:
When you are ready to apply for a loan, it will be easier for you and the lender to have these things ready.

Loan Checklist:

  • Address to your place of residence (past two years)
  • Social Security numbers
  • Names and location of your employers (past two years)
  • Gross monthly salary at your current job(s)
  • Pertinent information for all checking and savings accounts
  • Pertinent information for all open loans
  • Complete information for other real estate you own
  • Approximate value of all personal property
  • Certificate of Eligibility and DD-214 (for veterans only)
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
DISCLAIMER: We do not endorse any website that you click on, on our website. We want you to be fully informed of the process so that you can make an informed decision on what is right for you.

 

FHA 203(k) Rehab Mortgage

FHA 203(k) Rehab Mortgage

FHA 203(k) is a unique type of mortgage that enables home buyers to finance the purchase of a house and the cost of its rehabilitation through a single mortgage.

When buying a house that needs repair or modernizing (fixer upper), home buyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, the FHA 203(k) offers a solution that helps borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. FHA 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.

The FHA 203(k) insures mortgages covering the purchase and rehabilitation of a home that is at least a year old. The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area. The value of the property is determined by either (i) the value of the property before rehabilitation plus the cost of rehabilitation, or (ii) 110 percent of the appraised value of the property after rehabilitation, whichever is less.

Lenders may charge some additional fees, such as a supplemental origination fee, fees to cover the preparation of architectural documents and review of the rehabilitation plan, and a higher appraisal fee than the regular FHA mortgage loan.

Properties Eligible for Mortgage Loan
The extent of the rehabilitation covered by FHA 203(k) insurance may range from the exceeding $5,000 in cost to virtual reconstruction. A home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. FHA 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non residential uses, they can also cover the conversion of a property of any size to a 1 to 4 unit property. The types of improvements that borrowers may make using FHA 203(k) financing include:

  • structural alterations and reconstruction
  • making energy conservation improvements
  • adding or replacing floors and/or floor treatments
  • enhancing accessibility for a disabled person
  • major landscape work and site improvements
  • modernization and improvements to the home’s function
  • elimination of health and safety hazards
  • changes that improve appearance and eliminate obsolescence
  • adding or replacing roofing, gutters, and downspouts
  • reconditioning or replacing plumbing; installing a well and/or septic system

HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards.

Limited FHA 203(k) Mortgage

FHA’s Limited (formerly known as streamline) 203(k) program allows home buyers to finance up to $35,000 into their mortgage to repair, improve, or upgrade the property. Home buyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Home buyers can make their new home move in ready by remodeling the kitchen, painting the interior or purchasing new carpet.

Application:
When you are ready to apply for a loan, it will be easier for you and the lender to have these things ready.

Loan Checklist:

  • Address to your place of residence (past two years)
  • Social Security numbers
  • Names and location of your employers (past two years)
  • Gross monthly salary at your current job(s)
  • Pertinent information for all checking and savings accounts
  • Pertinent information for all open loans
  • Complete information for other real estate you own
  • Approximate value of all personal property
  • Certificate of Eligibility and DD-214 (for veterans only)
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
DISCLAIMER: We do not endorse any website that you click on, on our website. We want you to be fully informed of the process so that you can make an informed decision on what is right for you.

 

 

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FHA Mortgage Loan: Is this for me?

FHA Mortgage Loan: Is this for me?

The FHA (Federal Housing Administration) was created in 1934, and insures loans provided by FHA approved lenders. FHA insures loans on single family and multi-family homes in the United States. FHA insured loans require private mortgage insurance (PMI) to protect lenders against losses that result from defaults on home mortgages.

Can I qualify for a Mortgage with my Credit Score?

April 7, 2017 – Everyone wants to know if their FICO score is high enough to qualify for an FHA mortgage. Is it possible to qualify for an FHA loan with credit scores from 500 to 579?  YES. FICO scores between 500 and 579 may technically qualify for an FHA loan at the higher down payment requirement because those borrowers are considered high risk. But most lenders will require FICO scores in the mid-600s. The “500-579 rule” is only an FHA minimum.

When looking into an FHA Loan it is important to understand that FHA minimum standards and participating lender requirements are not the same. Participating FHA lenders may have higher standards than FHA loan minimums, and this is permitted as long as those standards are applied in accordance with the law.

Depending on your FICO scores, you may be eligible for more competitive interest rates and and lower down payments than applicants who come to the FHA loan process with “marginal” credit scores. You may be able to adapt credit related “best practices” to help make you a more attractive FHA loan applicant, but it takes time to work on your credit habits and establish patterns of reliability.

Lender standards will determine what interest rates are available for a certain range of credit scores, and which applicants may be required to make higher down payments because of those “marginal” scores.

Under the rules found in HUD 4000.1, the FHA single family home loan rule book for both new purchase and refinance loans, borrowers with credit scores at 580 or higher are technically eligible for maximum financing for FHA home loans. These borrowers will be required to make a minimum cash investment of a 3.5% down payment. For those with credit scores between 500 and 579 10% down is required according to HUD 4000.1.

Some loan applicants mistakenly believe that if it’s written down in the FHA loan rule book, the rule must be enforced. Lender standards, state law, or other factors may have a say in how the transaction is to be carried out in addition to these minimums.

When you are ready to apply for a loan, it will be easier for you and the lender to have these things ready.

Loan Checklist:

  • Address to your place of residence (past two years)
  • Social Security numbers
  • Names and location of your employers (past two years)
  • Gross monthly salary at your current job(s)
  • Pertinent information for all checking and savings accounts
  • Pertinent information for all open loans
  • Complete information for other real estate you own
  • Approximate value of all personal property
  • Certificate of Eligibility and DD-214 (for veterans only)
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals

You will need to pay for a credit report and an appraisal of the property you have an executed contract on.

DISCLAIMER: We do not endorse any website that you click on, on our website. We want you to be fully informed of the process so that you can make an informed decision on what is right for you.

 

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