Bouncing Back After Foreclosure and Bankruptcy

Boomers Bouncing Back, Are You Ready To Buy Again?

What are the qualifications for buying a home after foreclosure or a bankruptcy?  Certified Mortgage Planning Specialist Gail Alm at Fairway Independent Mortgage Corporation in Rehoboth Beach, has put together a guide to educate you to the fact that…  yes, you can own a home again!

Are you wondering if you can ever bounce back from bankruptcy, a short sale or a foreclosure and buy a new home? The attached information, supplied by Certified Mortgage Planning Specialist Gail Alm at Fairway Independent Mortgage Corporation in Rehoboth Beach, will guide and educate you to the fact that..  yes, you can own a home again!

DOWNLOAD a PDF of Gail's Qualifying Criteria at the end of the article.

DOWNLOAD a PDF of Gail’s Qualifying Criteria at the end of the article.

“There are many people who have been affected by the “Housing Bubble” and subsequent “Mortgage Meltdown”!  You may know someone personally, that has.  Bankruptcy and foreclosure are not the end of the world,” says Gail Alm. “By working together with a CMS, you can plan your strategy to enhance your buying power and buy a home again.”

The Following list details a borrower’s criteria for qualifying for Conventional, FHA, VA and USDA Rural Loans after bankruptcy or if  your home was taken by foreclosure.

CONVENTIONAL Financing

Chapter 7 Bankruptcy: 4 years from discharge date or dismissal date

Chapter 13 Bankruptcy: 12 years from discharge date or 4 years from dismissal date

Multiple Bankruptcy Filings in the Last 7 Years: 5 years from latest discharge date or dismissal date

Foreclosure: 7 years from completion date

Deed-in-lieu of Foreclosure: Note: Follow AUS requirements. 4 years from completion date, plus Owner-Occupied purchase or limited Cash-Out refinance and max LTV of 90%.  For a purchase, borrower must contribute at least a 10% down payment or what is required for the loan program. 7 years from completion date if transaction is a: Cash-Out, Second Home, or Investment Property

Pre-foreclosure, Short Sale, or Prior Loan Modification: 2 years—80% max LTV, 4 years—90% max LTV, 7 years—Max LTV allowed by program.

Consumer Credit Counseling: Must be approved by AUS.

FHA Loans

Chapter 7 Bankruptcy: 2 years from discharge date or dismissal date; or >12 mos. and < 24 mos. if acceptable extenuating circumstances

Chapter 13 Bankruptcy: 11 year of the payout period must have elapsed and payments must be made on time. Borrower must receive permission from the courts to enter into a mortgage.

Foreclosure, Deed-in-lieu of Foreclosure, Pre-foreclosure, Short Sale, or Prior Loan Modification: 3 years from completion date

Consumer Credit Counseling: 1 year of the payout period must have elapsed and payments must be made on time. Borrower must receive permission from the agency to enter into a mortgage. for you to pass along to your clients so they will know the “waiting period” after bankruptcy, foreclosure, short sale or loan modification. This should help educate your buyers to the fact that they can own a home again.

USDA Rural Loans

Chapter 7 Bankruptcy: 3 years from discharge date or dismissal date unless approved by GUS

Chapter 13 Bankruptcy: 11 year of the payout period must have elapsed and payments must be made on time. Borrower must receive permission from the courts to enter into a mortgage.

Foreclosure or Deed-in-lieu of Foreclosure: 3 years from completion date unless approved by GUS

Pre-foreclosure, Short Sale, or Prior Loan Modification: 3 years from completion date. If short sale or loan modification is recognized by GUS, GUS may allow a shorter time period. Short sales require a minimum 660 credit score. If short sale is not recognized by GUS, manual underwrite is required with minimum 660 credit score.

Consumer Credit Counseling: 1 year of the payout period must have elapsed and payments must be made on time. Borrower must receive permission from the agency to enter into a mortgage.

VA Loans

Chapter 7 Bankruptcy: 2 years from discharge date or dismissal date

Chapter 13 Bankruptcy: 1 year of the payout period must have elapsed and payments must be made on time. Borrower must receive permission from the courts to enter into a mortgage.

Foreclosure or Deed-in-lieu of Foreclosure: 2 years from completion date

Pre-foreclosure, Short Sale, or Prior Loan Modification: 2 years from completion date

Consumer Credit Counseling: 1 year of the payout period must have elapsed and payments must be made on time. Borrower must receive permission from the agency to enter into a mortgage.

DOWNLOAD-You Can Buy Again-PDF

For more information or questions on qualifying for financing, contact Gail Alm. Certified Mortgage Planning Specialist at Fairway Independent Mortgage Corporation. Phone: (302) 260-7088, email
gaila@fairwaymc.com or visit http://www.gailalm.com.