How To Get A Home Loan With A Previous Foreclosure

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
San Diego, California
A new product has just been released to assist new home buyers or homeowners looking to refinance that have had an economic event in the past. This program is specifically designed for borrowers that have experienced a short sale, foreclosure, deed-in-lieu of foreclosure or bankruptcy.

If you follow you have most likely seen me write about the product that requires 30% down/equity, 300K minimum loan size (430K value or higher) with no seasoning on a previous economic event. Depending on your situation there could be one product that will benefit over another.

Requirements & Guidelines on New Program:
  • NO Minimum Loan Size up to 1.5MM
  • Minimum FICO Requirement of 620
  • 10% Down available for borrowers immediately after short sale
  • 15% Down Payment available for borrowers the day after foreclosure
  • 20% Down Payment Required for FICO 620-680
  • RISK-Based underwriting
  • 30Year Fixed Rates and 5/1 ARM available
  • Interest Rates from 6% - 6.25% (or higher depending on credit profile)
  • Cash Out Limits Depend on FICO
  • No Pre-Payment Penalty
  • NO Investment properties
  • NO ARM’s Length Transactions
  • NO Manufactured Properties or Commercial Properties
  • 12 Months Satisfactory Credit & Payment History
  • Reserve Requirements either 3 or 6 months depending on Debt-to-Income Ratio
  • 10% of Borrowers Own Funds Required – The Remainder Can Be a Gift
  • If 50% Down Payment or Equity the Entire Amount Can Be a Gift
  • Escrow’s Required to be Impounded
  • Limit of 4 Properties Financed
  • Full Submission to Underwriting to Determine Eligibility

With the guidelines that you see above I have bolded some of the differences between this program and one of the others that we offer for borrowers with NO Seasoning Requirements. This product does require 12 months out of the economic event and is significantly better than a HARD Money loan which in many cases can be the only option for a borrower in this circumstance.

You can see another one of my articles with a similar program like this one here:
Refinance Out of a HARD Money Loan Now! (Purchases also available)

The above article explains guidelines and criteria to buy or refinance a home with no seasoning requirements.

As I mentioned above it depends on your current situation which program will suit your needs, wants and goals the most. The loan officer that you decide to work with (hopefully me) needs to understand this and put you in the best product to match your goals. These programs are not commonly known in the industry today and most banks do not offer them. If you have any questions please don’t hesitate to reach out to me on my contact information below.

[email protected] or 619-379-8999
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