Foreclosed in Jan ’12. Couples credit score now 700 . To use inheritance for 35% down payment –Is best we can do Private Money at 9.5% 3 points?

Asked by Johnny Jackson, San Diego, CA Thu Mar 7, 2013

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John Walin’s answer
John Walin, Agent, Libertyville, IL
Sun Mar 17, 2013
Wow Johnny
Be grateful for short term private money. Is CA a recourse state? Sounds like a strategic default scenario, talk to a lawyer to protect yourself from being a party to fraud.
1 vote
Valli Lopez, Agent, San Diego, CA
Wed Sep 24, 2014
I specialize in portfolio loans and can do them in the 5's and fixed for 5 years....that gives them enough time to get into the conventional loan at their 7 year mark at fair rate pricing. It's not 3 pts either, it's 1.

Valli Lopez
NMLS 980530
0 votes
lendersnetwo…, Agent, Plano, TX
Sun Sep 1, 2013
Yes there is a new program for FHA by HUD for people in your shoes you just need 12 months from the date of the Bankruptcy, short sale or foreclosure.

The U.S. Department of Housing and Urban Development (HUD) recently announced the “Back to Work – Extenuating Circumstances” program, aimed to help people who have lost their home through foreclosure, short sale or bankruptcy. HUD has reduced the previously required minimum of 36 months to 12 months before they may be able to finance another home, given that they meet HUD’s minimum eligibility requirements.
0 votes
Daniel Lehman, , San Diego County, CA
Fri Mar 8, 2013
If you have a foreclosure in January of 2012, there is a 7 year waiting period on a new Conventional loan, a 3 year waiting period on a new FHA loan, and a 2 year waiting period on a new VA loan.

If one person was NOT on the loan when the foreclosure took place, than they can go on the loan pending their income qualifies, but if not, here is the situation:

If either spouse is a veteran, they can purchase in January of 2014. If not, they can purchase in January of 2015 under FHA guidelines.

Any questions, let me know...

Daniel Lehman
0 votes
Johnny Jacks…, Home Buyer, San Diego, CA
Fri Mar 8, 2013
we do plan to live in the home - Perhaps refinance after 1 year or two.
0 votes
Scott Godzyk, Agent, Manchester, NH
Fri Mar 8, 2013
Private money is for short term purchases, sually less than a year where the property will be resold or refinaced. There is usually a penaly if not paid off within a specified time frame such as 6mo or a year. Check the fine print and details. if you are going to live there, hard money is not for you.
0 votes
Elisa Peskin, Agent, El Cajon, CA
Fri Mar 8, 2013
Have seen 9%, maybe 8% if you're lucky
0 votes
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