Loans After a Foreclosure / Bankruptcy

 

If you’ve lost a previous home to foreclosure, short sale, or deed-in-lieu

home loan after foreclosure
If you’ve recently had to declare bankruptcy

Have a credit score of at least 580?

No waiting period, or “seasoning” is required after a bankruptcy, foreclosure, deed-in-lieu of foreclosure or short sale

You can finance a single family residence, condo, townhome, 2-4 unit property, or a house in a Planned Unit Development (PUD).

15% Down payments (product code: FS-CBR)

Loans from $200,000 up to $1 million.
Due to a borrower's recent loan default or bankruptcy, expect rates on this program to be 4 - 5.5% above what someone who has excellent credit would obtain. The positives are there is no prepayment penalty.

Need a 10% Down Payment?
Had a Foreclosure, Bankruptcy CH. 7 & 11 or Deed in Lieu that's 24 months or more
680 credit gets you 90% financing up to $1.5 million on a purchase or when refinance existing loan.
660 credit score gets 85% financing " "
620 credit gets gets 80% financing " "
550 credit gets you 75% financing " " with 12 months or more (product: CSC-NP)

mortgage wait after Bankruptcy
NOTE: Short sale or Chapter 13 Bankruptcy does not need any elapsed time period. (product code: Access-CBR)

- Have a bankruptcy that is at least 4 years old, then 90% financing is allowed up to $750,000 in high cost counties only within California (L.A., Orange, Ventura, San Diego, San Luis Obispo, Santa Barbara, Santa Cruz, San Mateo, Santa Clara, San Benito, San Francisco, Alameda, Contra Costa, Marin, Napa.
Rate example in CA as of 6-24-2016: 3.875% (APR: 4.156) - 4.625% (APR: 4.746) 1st loan of $625,500 and a 2nd loan of $124,500

If the property in question is not in a California high-cost county, or out of state, the rate for 90% financing, jumps to 8.25% (CSC).

What determines the rate and maximum borrowing power?

It really depends on if your foreclosure or bankruptcy is:

  • less than 12 months, (under 1 year),
  • greater than 12 months but less than 24 months,
  • greater than 2 years but less than 3 years,
  • greater than 3 years but less than 4 years,
  • greater than 4 years but less than 7 years.
Additionally, your credit score and history after the major credit event plays a pivotal role as well. There should be no late payments on credit cards, auto loans or mortgage following a foreclosure or bankruptcy.

The more attractive programs for a home buyer who's had a recent bankruptcy, just over 24 months, is to put 25% down. Rates for that situation are currently in the mid-to-high 5-percent range (product: OT-NP / AO).

With a bankruptcy over 4 years out, you can even choose the bank statement loan program and not provide any tax returns.

Providing mortgage help in the states of CA, CO, FL, OR, TX, WA

Always keep in mind, that loan programs are subject to change without notice.