Lenders have gotten tougher on their requirements, and each lender is different. Although you will not qualify for most government backed programs (Fannie, Freddie or FHA), VA will lend to you as long the foreclosure was not on a VA loan (of course that assumes you or someone buying this house with you is a vet). Also, some credit unions or other "relationship" lenders may look at your situation and agree to work with you. Especially is there were special circumstances that cause the foreclosure, and that now are a thing of the past. Most internet lenders will filter you out.
The only way you will know for sure is to speak with multiple lenders in your area. You might want to start with your bank, where you keep your "more than 50% down" on deposit. Or, if you are a member of a credit union speak with them. If none of these move you forward, I can provide you with the name of a great lender that has offices in San Jose. Let me know if you need this referral.
Good luck and Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty