Financing in Ventura>Question Details

Hope To Close, Home Buyer in San Diego, CA

Any suggestions for a lender to finance a homepath loan 2 years after foreclosure. All criteria met. But don't know what bank will do the loan.

Asked by Hope To Close, San Diego, CA Tue Mar 29, 2011

Fannie Mae said it is good to go, but they would not tell what bank would take the loan.

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Since HomePath is a Fannie Mae product, you'd have to qualify based on Fannie Mae guidelines and your exclusionary window post-foreclosure is now SEVEN years. Your best bet is to purchase a home with a FHA or VA loan (if applicable) at this time.

I copied this directly out of the Fannie Mae selling guide, which is current as of this post:

Foreclosure
A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.

Exceptions for Extenuating Circumstances
A three-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the completion date of the foreclosure action. Additional requirements apply between three and seven years, which include:

• Maximum LTV, CLTV, or HCLTV ratios of the lesser of 90% or the maximum LTV, CLTV, or HCLTV ratios for the transaction per the Eligibility Matrix.
• The purchase of a principal residence is permitted.

Bankruptcy (Chapter 7 or Chapter 11)
A four-year waiting period is required, measured from the discharge or dismissal date of the bankruptcy action.

Exceptions for Extenuating Circumstances
A two-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the discharge or dismissal date of the bankruptcy action. Bankruptcy (Chapter 13)

A distinction is made between Chapter 13 bankruptcies that were discharged and those that were dismissed. The waiting period required for Chapter 13 bankruptcy actions is measured as follows:

• two years from the discharge date, or
• four years from the dismissal date.

The shorter waiting period based on the discharge date recognizes that borrowers have already met a portion of the waiting period within the time needed for the successful completion of a Chapter 13 plan and subsequent discharge.

A borrower who was unable to complete the Chapter 13 plan and received a dismissal will be held to a four-year waiting period.

Exceptions for Extenuating Circumstances
A two-year waiting period is permitted after a Chapter 13 dismissal, if extenuating circumstances can be documented. There are no exceptions permitted to the two-year waiting period after a Chapter 13 discharge.

The above waiting periods don't apply to DU refi plus and refi plus transactions.
Web Reference: http://RobWeber.com
1 vote Thank Flag Link Wed May 2, 2012
There is no lender I know taking less than 7 years after a foreclosure for Homepath.
0 votes Thank Flag Link Fri Apr 26, 2013
Generally Fannie Mae requires 7 years from the date of foreclosure before a new loan could be obtained. With extenuating circumstances 3 years maybe with a 10% down payment. Not sure what you mean by all criteria met?
0 votes Thank Flag Link Fri Apr 26, 2013
With Special circumstances I often find it helpful to sit down with someone who will listen to my whole situation and help me chart the right course for my family. I know that Bob Davis at Heritage Oaks Bank is that kind of guy and will share his expertise and advice with you so you can make some good decisions for your future. You can e-mail him at bdavis@heritageoaksbank.com, he is local right here in Ventura County and has been for decades!
0 votes Thank Flag Link Fri Apr 26, 2013
I had a client who wanted to buy a home in Arizona, but he had a foreclosure. After researching the web I found a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure. There is no waiting period. Good to see lending options coming back.
0 votes Thank Flag Link Sun Apr 21, 2013
Hello,
Even though Fannie Mae says it's good to go, it doesn't mean that a lender will do the loan. Lenders can add their own additional guidelines on top of Fannie Mae's guidelines. These additional guidelines are called overlays and each lender who offers the HomePath have their own unique overlays. As a consumer you really need to do business with a Loan Originator who can check with each lender who is approved to do the HomePath loan to see what overlays they have. There are 37 approved lenders in California who can do the HomePath loan. Going to a big box bank gives you less options because you are subject to just their overlays. A loan broker will give you more options since they may be set up to do business with possibly a half dozen or more lenders who offer the HomePath loan.
Also keep in mind the FHA 203k loan, which is a similar loan to the HomePath in that you get to purchase a home and obtain rehab funds to fix it up, all in 1 loan, it comes with a 3.5% down payment option and the guidelines are "generally" looser than Fannie Mae. The 203k is available for any home, so you're not restricted to a list of homes like the HomePath. Hope this helps, and I wish you the best in your pursuit in purchasing a home. If you have any questions or concerns feel free to contact me.
0 votes Thank Flag Link Wed Mar 30, 2011
Are you a Veteran? If so your wait is only 24 month.
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Wed Mar 30, 2011
Only 24mons with the VA but the mortgage service company may have a longer waiting period from what I am seeing. lmk
Flag Wed Jul 30, 2014
Hello,
There are other criteria that needs to be met after a foreclsure. First off if you foreclosed on a lenders loan, that lender most likely will not allow you to finance with them again for up to 7 years. So if your foreclosed loan was with Bank of America then yes it is possible for Wells Fargo to do the loan if all other criteria is met. Established credit, re-established credit, income, assets, etc. Contact me direct and I can walk you thru the process.
0 votes Thank Flag Link Wed Mar 30, 2011
Maybe Wells Fargo Retail if you have a good hardship reason for the foreclosure.
0 votes Thank Flag Link Tue Mar 29, 2011
Can this be true? Yes, but only with Fannie Mae HomePath homes that qualify for Fannie Mae’s HomePath financing. Fannie Mae is the largest purchaser of mortgages in the U.S. and in February of 2009 announced special financing to make it more affordable to buy their foreclosures.
When it comes to getting a new conventional loan vs a FHA loan, if you recently had a foreclosure you may have to wait 7 years to get a new standard loan, but still only 3 years to get FHA loan.

Recently Fannie Mae (who controls most of the lending recommendations for standard loans) arrived out with a new guideline where borrowers will have to wait 7 years following the date of a foreclosure sale in purchase to get a new standard loan. This time period can be cut to 5 years if you can document an extenuating circumstance that was the cause for the foreclosure. This change has been made by Fannie Mae due to the number of “strategic defaults” where borrowers who can spend choose to walk away. This also encourages the pursuit of short sales for borrowers who are underwater and can’t sell. Fannie Mae only requires a two year wait following a short sale to acquire a new standard home loan.

FHA still stays only a 3 year wait following the date of a foreclosure sale to acquire a new FHA loan. VA loans are the most lenient with only two years following foreclosure needed to get a VA loan.

This new rule is particularly impactful on investors wanting to get non-occupied investor loans. FHA and VA loans are only for owner occupants. So the ONLY choice for investors to get a home loan is standard financing. And investors are now out of the marketplace for 7 years following a foreclosure on their record.

Right here are some of the most up-to date benefits of standard and FHA loans:

FHA

FHA loan down payment is only 3.5% and that can be a gift from a relative, this is lowest down payment accessible of any loan today (outdoors of specialized loans this kind of as VA loans for military and USDA loans for rural properties)
Qualify FHA loan with extremely lenient guidelines…only 620 FHA loan credit score needed and 56.9% financial debt-to-income ratio (standard requirements a 680 credit score score and 45% financial debt ratio)
Optimum FHA loan up to $729,750 in numerous California locations this kind of as Los Angeles, San Diego, San Jose, San Francisco, Santa Barbara and other locations. This would permit you to purchase a house with FHA loan California up to $756,217 with only three.5% down
Conventional

5% down accessible if you have a 720 credit score score with 41% financial debt-to-income ratio
Conventional loan limits in California up to $729,750
Homepath home loan accessible on Homepath properties with three% down and 10% down for 2nd house purchasers and investors
Homepath financing accessible on Fannie Mae owner condos without any condominium checks. I "Hope" this helps ....
Scott Gilman with Prospect Mortgage knows today's rules for Fannie Mae....
0 votes Thank Flag Link Tue Mar 29, 2011
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