As many have suggested your best bet is to talk to mortgage broker, since they work with many small banks they will have flexibility to work with your situation. Please feel free to call me if any questions.
However, if that foreclosure was due to extenuating circumstances (health issues, job transfer), you may be able to move forward with your refinance.
If not, you will need to wait the additional 1.5 years for convention and another 6 months for FHA.
You will have to pay mortgage insurance, but with a 4% interest rate and 1.5% monthly with MIP you are still at 5.5 vs. 8.5%.
Make certain that you have all your cancelled checks from paying the private lender....demonstrating that you have been making your payments on time as prescribed.
Now looking at the date of your question..you will be fine now as it has been 4.5 years
I may be able to help.
I work for both a Real Estate Attonrey/Broker.
We typically assist homeowners in distress and try to have options.
I have been contacted by investors who claim they can help homeowners with short sales and foreclsoures buy or refinance.
Their rate is lower than what you have
Your loan along with other debt on your credit report needs to be at or below 45% of your gross income,
You need to be on your job for at least 3 years. Credit score is unimportant ability to pay and collateral is what they lend on.
Executive Legal Assistant
NMLS # 6395
Financing Kentucky One Home at a Time
You are not too far off from that so I would sit tight and wait for the full 3 years.
If you're been working diligently in repairing your credit, plus the significant equity you have managed to build up, there may be some possibilities open to you.