3dand4d, Home Buyer in Chantilly, VA

I went bankrupt and forclosed on an investment property last yr,now credit=670, 10% down $. any NON fha mortgage loans to buy a primary residence?

Asked by 3dand4d, Chantilly, VA Sat May 28, 2011

are there any non fha loans that i can use to get a mortgage loan from? fha has a 2-3 year requirement. what other options do i have if i can now afford a new home, have money to put down and can pass certain credit criterias? this purchase will be for a PRIMARY residence bc i am renting and want to buy, ty

Help the community by answering this question:

Answers

11
3dand4d,

Are you sure your agent is not Santa Claus???

I do not know how they practice real estate on the North Pole, but Uncle Sam requires that all money exchanged in the real estate transaction must be included on HUD-1.
Make sure that your Santa Claus agent reports this *refund* to the lender and the title company, as he should, otherwise BOTH of you would be committing FRAUD. We don't want Santa Claus to lose his license.

Vivianne Rutkowski
KELLER WILLIAMS REALTY
0 votes Thank Flag Link Sun May 29, 2011
Wow I love u all for taking the time to educate and help me. This was ever so helpful. God bless u all
We do have some local small banks and I have Realtor that will help me and is ok with no fee bc he was going to give me the commission fees anyway. Ty Ty again!!
0 votes Thank Flag Link Sun May 29, 2011
Ros,
I appreciate the correction on the 7 years. I was given mixed information by 2 lenders for a client of mine a month ago. Either way, he will still have to wait!
thanks for clarification!
Ardy
0 votes Thank Flag Link Sun May 29, 2011
Everybody else gave good advice. I will give you a different twist that I have seen work in our area. Go to or for some check out on line SMALL LOCAL BANKS which might have a foreclosure on their books. They may be willing to look at your situation. In the deals that I have seen they require 10-20% down, terms of 6.5-7.5%, 30, on a 3-5 year fixed rate. Other factors which influence the deal are the reason for the past foreclosure, and current debt to income ratio and any pending legal issues. I would not approach a large bank they probably won’t even talk to you. As far as asking an agent for help in doing this type of deal very, very few have the contacts or the knowledge to steer you the right direction. The other problem is even if they knew they may not get paid for their help, banks are funny about this type of deal and generally do not compensate the agent so we have less interest in this area of the business. Good Luck and I hope this helps. Scott
Ps this deal is getting much harder to find, the small banks in our area have cleaned up their books and accounts and have very few of these to deal with. I used to get a call once a month on this type of problem now maybe once a quarter. Maybe this is a sign that the market is turning around.
Web Reference: http://www.randshomes.com
0 votes Thank Flag Link Sun May 29, 2011
Ardy Shahriari:

I must respectfully disagree with your answer.

FHA's waiting period for a foreclosure is three years, NOT seven. A conventional loan has a seven year waiting period for a foreclosure (take a look at the link jn my answer below).

As far as hard money lenders, they will lend to anyone wither their loan to value requirements regardless of bankruptcy or foreclosure. They are just extremely expensive & not something I would recommend.

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
http://www.ezAZloan.com

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund, in-house, FHA (w/a 580 score), 203k, VA, USDA, Jumbo, Conventional, loans to Canadians, Australians & other Foreign Nationals, on time. NMLS ID 263779 | AZ BK 0903725
0 votes Thank Flag Link Sun May 29, 2011
You can probably find a loan out there, but it will be hard and you will most likely pay a higher interest rate than someone with a higher credit score. The market is not what is was in 2005-08, lenders are much tighter and there are more regulations. With a higher credit score you can get a better rate and terms for your loan and you can save up more money for a larger down payment by waiting.

Good luck!
0 votes Thank Flag Link Sun May 29, 2011
3dand4d,

Lenders for real estate purposes use different credit scores than for consumer purposes, eg. to purchase a car, appliances, furniture, etc.

Question: Is your credit score 670 for real estate purposes to purchase a home?

However, even IF your score is 670 and you are able to find a lender who is willing to finance your home purchase, that lender will most likely offer you a HIGHER INTEREST RATE simply because you are a higher RISK for that lender.

My suggestion is that you wait another year or two and establish your credit worthiness to lenders.
If you do not want to wait, contact a few lenders, but be prepared to pay a higher interest rate.

NOTE: For legal, tax, and financial advice always contact experts in those fields.

Vivianne Rutkowski
KELLER WILLIAMS REALTY
0 votes Thank Flag Link Sun May 29, 2011
hate to beat a dead horse here, but even after 2 years which is FHAs wait time for bankruptcy, you have a new extended 7 year wait time on foreclosure. This total wait time of 7 years from date of foreclosure applies to both fha and conventional. Hard money will be out of the question as well. Time to save a lot of cash! Good luck.
0 votes Thank Flag Link Sun May 29, 2011
You're going to run into the 2-3 year requirement with just about every lender, whether it's FHA or conventional.
0 votes Thank Flag Link Sun May 29, 2011
You are at the mercy of wolves or sharks in this case, Your credit is no good in most common and usual financial institutions. What made you think you could buy anything after only a year of having a Bankruptcy and a Foreclosure, You score means nothing till the side line notes say otherwise!
0 votes Thank Flag Link Sun May 29, 2011
Unless you go with a hard money lender, which I do not advise, you are going to have to wait for another two years, unless you can be approved for a VA loan, in which case you need to wait another year (a 2-year waiting period).

Here is a list of waiting periods:
http://www.trulia.com/blog/roswell_moore_cmps/2011/01/how_lo…

You might look around for a lease option purchase, but be sure you use a real estate agent to help you. There are hidden land mines in these things.

Good luck,
Ros


Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
http://www.ezAZloan.com

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund, in-house, FHA (w/a 580 score), 203k, VA, USDA, Jumbo, Conventional, loans to Canadians, Australians & other Foreign Nationals, on time. NMLS ID 263779 | AZ BK 0903725
0 votes Thank Flag Link Sun May 29, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer