Wolf, Home Buyer in 37336

have a foreclosure from 6 months ago,(was a rental) Can I get a loan for new home with 75% downpayment?

Asked by Wolf, 37336 Thu Feb 2, 2012

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Ron Thomas, Agent, Fresno, CA
Thu Feb 2, 2012
Your new Lender may ask the question:
If you have that money, why didn't you use it to save the other property?
This goes to whether you would stick it to them again.

Also, have you made allowances for the last Lender coming after you for the Deficiency?
Tennessee is a RECOURSE state.

Good luck and may God bless
1 vote
Brandon Pete…, , Shoreview, MN
Wed Apr 4, 2012
Your best bet is to contact a lender that offers portfolio products. I am sure there are many in your area. If you are buying the home owner occupied maybe you can contact your local credit union!

Thanks
0 votes
Christopher…, Agent, Bloomington, MN
Thu Feb 2, 2012
Ah I see Ok well then go find a realtor in your state that works with investors. He should know more about seller financing, and Hard/private money whether it is bridge loans or whatever.
0 votes
Wolf, Home Buyer, 37336
Thu Feb 2, 2012
I'm not an investor. The only reason I had a rental property was because I got stuck with the house
when I was divorced. Couldn't sell it so I rented it for a while.
0 votes
Christopher…, Agent, Bloomington, MN
Thu Feb 2, 2012
George those are not bad rates for Hard Money feel free to send me an email with more information. Are you basing LTV off of sales price or the AARV?
0 votes
Christopher…, Agent, Bloomington, MN
Thu Feb 2, 2012
If you are an investor then you should already know the answer which is yes, but as the others said traditional financing is most likely out of the question. At least my loan officers don't know a way to do it between your credit score and foreclosure on your record. Even small banks will have a problem as I know it. I am not a loan officer though so of course do your own due diligence.

You could do a land contract which then you would not even need 75%. Rent-to-own another option. Basically seller financing.

You could do a bridge loan and you would have the cash to make that work. Should not be too hard with that type of down payment to re-fi in a couple years when you would re-qualify for traditional lending again. That would allow you to look at a wider range of properties than those just advertising seller financing. You would need to pay a little more, but that is the trade off you get.

I have even heard of investment companies where you pay a fee, they buy the property, and then do the seller financing with you. Seems to me though you are paying a lot extra than what is not necessary.

I do see this question asked a lot on Trulia, and if you have the cash for large down payments the answer is yes. Some know only traditional financing, and others like myself who work with investors knows there is a whole different lending world out there most people never care to research. You just have to know it will cost you more. Whether that is still worth it to you versus renting for 2-3 years is completely your decision. Tennessee is no different than any other state in this regard, and I only have contacts that will lend in Minnesota.

Good Luck Wolf
0 votes
Wolf, Home Buyer, 37336
Thu Feb 2, 2012
Don,
No matter where the money came from, I'm not going to sink every dollar I have into a rental just to keep it
a float. Even If I found a new renter they would not pay nearly enough to cover the mortgage. It was a liability.
If I would have sunk all my money into it then that leaves me with no money, no home, no prospects and still left with an underwater liability. That would be insane to do. FYI- the money came from my new wife.
0 votes
George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Thu Feb 2, 2012
I just answered this question a few moments ago. The answer is yes. Please check out my article below and contact me if you have any further questions.
0 votes
Don Tepper, Agent, Burke, VA
Thu Feb 2, 2012
My reaction was similar to Ron's. You went through a foreclosure 6 months ago, but now you have enough cash to make a 75% downpayment on another property? Huh?

And I've noticed more such questions in the past month or so--folks who've gone through a short sale or foreclosure who seem to have so much money they don't know what to do with it.

If you had the money 6 months ago, why didn't you use it to avoid foreclosure?

If you won the lottery within the past 6 months: Congratulations.
0 votes
Angela Niece, Agent, Twin Cities, MN
Thu Feb 2, 2012
There is nothing that says you can not get a loan or buy a home after a foreclosure. You just can't buy one from a lender that sells their loans to Fannie and Freddie. I would try smaller banks. I am sure if you call 3-4 of them and tell them you want to put down 75%, one of them will lend to you.

Joe Niece
Web Reference:  http://www.joeniece.com
0 votes
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