Purchasing a Home after a Foreclosure - Updated for 2019

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

• 7 Years after Foreclosure - this is the standard waiting period , exceptions can apply
• 3 Years after Foreclosure - the waiting period with extenuating circumstances
• 4 Years after Bankruptcy - If the mortgage was included in a Bankruptcy the BK waiting period applies

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