Get a Home Loan one-day after a major Credit Event is finished (i.e. Bankruptcy, Short Sale, Deed in Lieu, or Foreclosure)
15% down – 660 score required. No Mortgage Insurance.
20% down – 580 or 620 score required, depending on the program. No Mortgage Insurance.
If your major Credit Event happened more than 2 years ago, the down payments are lower.
10% down – 660 or 680 score, depending on program. No Mortgage Insurance.
15% down – 620 score. No Mortgage Insurance.
20% down – 580 or 610 score, depending on program. No Mortgage Insurance.
The down payment percentages listed above are for purchase of a Primary Residence. Second Home and Rental Properties require a larger down payment. The minimum loan amount is $100,000. In some case, 100% of the down payment can be a gift from a relative. When determining your credit score, we take the middle of the 3 scores.
**You will need to have a minimum of 3-months of the payment in your bank or retirement fund at close of escrow for reserves.
**A gift of the down payment from a family member may be allowed
**Maximum 55% DTI (debt to income ratio) considered with compensating factors
**Fixed and ARMs
1-4 units (SFR, Detached, Semi Detached, Attached)
PUD (SFR, Detached, Attached)
Warrantable Condominium (Detached, Attached)
Non-Warrantable Condominiums Attached/Detached), including Condotels
1-Year after Bankruptcy / Short Sale / Foreclosure loans are now available with 3.5% down.
Your credit issues were the result of a Loss of Employment or a loss of Income beyond your control. You must show that the household income was reduced by 20% or more for 6-months or longer.
The borrower has demonstrated full recovery from the event.
The borrower has completed a one-hour housing counseling session. Ask for details.
3.5% down payment.
A 12-month clean rental history
Waiting Periods for FHA and Conventional Loans
(Typically, these loans have the best rates, so if you meet these waiting periods, you are golden)
FHA – Max loan amount $294,515. Purchase price can be higher.
2 years after Ch. 7 Bankruptcy (must have re‐established some credit after BK)
Financing available for borrower in the middle of a Ch. 13 BK (must have court approval and most recent 12 months installment payments must be on time)
3 years after Foreclosure and 3 years after Short Sale (if there were any 30 day mortgage lates prior to short sale)
Standard Conventional Financing – Max loan amount $453,100. Purchase price can be higher.
4 years after Ch. 7 Bankruptcy
2 years after Ch.13 Bankruptcy discharge (4yrs after dismissal)
4 years after Short Sale
7 years after Foreclosure