Mortgage after foreclosure

There are plenty of misconceptions regarding getting a mortgage after the unfortunate event of a mortgage foreclosure. However, the time it takes to be able to get a mortgage after the fact is shorter than you think.  There are even shorter wait times when an extenuating circumstance was the reason for the foreclosure.

An extenuating circumstance is a event that does not reoccur and is beyond the borrowers control. Such as an event that resulted in a immediate, significant and prolonged cut in income or an event that added a large amount to your bills.

Mortgage after foreclosure that has no waiting period

Since conventional and government-insured mortgages have a waiting period after a foreclosure, there are alternatives documentation programs that allow for a borrower to get a mortgage literally the day after if foreclosure.  these alternative documentation programs use a common-sense approach to underwriting a borrower’s credit-worthiness and ability to repay the loan.

These mortgage options are currently limited to self-employed borrowers, that would use their assets to qualify. Instead of using tax returns, pay stubs and conventional documentation.  Additional requirements come into play such as, would need at least a 20% down payment. For the channel information on these programs please contact me.

FHA mortgage after foreclosure in a 3 year wait

The waiting period for getting an FHA mortgage after a foreclosure is much shorter than a conventional mortgage. A borrower can apply for an FHA mortgage three years after a foreclosure .

Getting a conventional mortgages after foreclosure

Waiting times for applying for a mortgage after a foreclosure are different for conventional mortgages.  The longest wait period is for a conventional mortgage, which is a seven-year waiting period without extenuating circumstances.  The waiting period can get cut down to 3 years and go all the way up to 7 years depending on the extenuating circumstance.  The seven year gap also depends on the down payment amount and if the borrower is going to live in the property or is purchasing the property as an investment.

VA foreclosures

Veterans have amazing opportunities when applying for a mortgage through a VA loan, like purchasing a property with no down payment, credit score requirements as low as 550 for loans less than $484,350 and much more.  The requirements for qualifying for a VA loan after a foreclosure is much shorter than both a conventional and FHA mortgage.  The waiting period after foreclosure is 2 years.  

For additional questions regarding Conventional mortgages, FHA mortgages or VA loans in California.  Please contact feel free to contact me at daniel@danielmloans.com or message me through my facebook page for a quicker response.