Through credit repair your friend might be able to get a loan in 6 months. Typically a borrower would have to wait 24 months to get a loan from an institutional bank. However, there is seller financing or Self Directed IRA private mortgages. The most efficient way is to begin with credit repair and see if the foreclosure will come off the credit report. Then there will be no problem at all. Take care!
Even with the current programs intended to help buyers in distress, most homeowners are still finding help slim and fleeting.
Depending on the circumstances surrounding his first and primary home, he may have to wait longer than the two years to purchase another home. Lenders' standards have increased dramatically, and now even buyers who were late ONE time in the past 12 months are finding it difficult to refinance. If the home was sold in a short sale, the owner may qualify to purchase another home in about 2-3 years. However, if the home was sold in foreclosure, then your friend may have to wait at least 5 years before qualifying for another home under current FNMA, FHLMC and FHA guidelines. He may certainly purchase a home using private money, but considering that there are two (2) homes he currently owns and for which he can occupy, he should count himself lucky and work on his credit over the next 60 months to afford a home in the near future.
In the meantime, have your friend contact a qualified mortgage broker in your area who can review his credit history, financial circumstances, cash reserves, and can help him move toward his next home purchase just as soon as he is qualified. Good luck!!
Grace Morioka, SRES, e-Pro
Area Pro Realty