If you are known as a “boomerang buyer” someone who has lost their last house from a foreclosure after the economy dropped out from under our feet. Now you have steadily put your life back together, including a nice size nest egg, a large savings account and now you are ready to get back into home ownership. How do you become a homeowner when your foreclosure hasn’t dropped off yet? There are a few options for you to consider; rent-to-own, foreclosure forgiveness, FHA loans or hiring a Broker is just a few. Banks used to look at foreclosures as a black mark on your credit, however with the 2008/2009 crash; they don’t look at them as harshly as they once did. A few things to consider about these three options are:
Rent-to-own: Is a term …show more content…
Something to remember is the three year waiting period starts when the foreclosure is completed and not when it is started.
FHA Loan: Although you have a foreclosure on your credit and can’t apply for a conventional loan, another type of loan you may qualify for is the First Time Homebuyers loan or the FHA loan. One of the positive sides for the FHA loan is that they only require a 3.5% down payment, compared to the 10% the conventional mortgage requires. Although if you only put 3.5% down and your loan is for more than 80% of your appraised value of your home you will be required to pay for mortgage insurance which could run an extra $100 month or more added to your loan.
Brokers: Sometimes if you hire a mortgage broker you will have more choices to choose from. When you apply for a mortgage directly from the banks you are limiting yourself on the type of loans you may qualify for; however in contrast a Broker may have a vast network of lenders and have many options in finding a mortgage solution if the foreclosure in your past is creating difficulties in obtaining a new
Rent-to-own: Is a term …show more content…
Something to remember is the three year waiting period starts when the foreclosure is completed and not when it is started.
FHA Loan: Although you have a foreclosure on your credit and can’t apply for a conventional loan, another type of loan you may qualify for is the First Time Homebuyers loan or the FHA loan. One of the positive sides for the FHA loan is that they only require a 3.5% down payment, compared to the 10% the conventional mortgage requires. Although if you only put 3.5% down and your loan is for more than 80% of your appraised value of your home you will be required to pay for mortgage insurance which could run an extra $100 month or more added to your loan.
Brokers: Sometimes if you hire a mortgage broker you will have more choices to choose from. When you apply for a mortgage directly from the banks you are limiting yourself on the type of loans you may qualify for; however in contrast a Broker may have a vast network of lenders and have many options in finding a mortgage solution if the foreclosure in your past is creating difficulties in obtaining a new