Absolutely Real Real Estate: How to get qualified to buy a house.

Monday, March 23, 2015

How long after a Short Sale, Foreclosure, or Bankruptcy do I have to wait?

Did you get caught up in the housing bubble that burst? Almost everybody did! In the Riverside, San Bernardino, Ontario metro areas nearly 50% of all homes sold in 2012 were foreclosure related sales. That was just 2012. Add to that, all of the other distressed homes sold between 2007 and today, and you get a pretty good idea of the scope of that bubble bursting.

Here's the good news though. If you've survived the stresses of going through a foreclosure, a short sale, or a bankruptcy, you're probably closer than you think to getting back into the market. How close? Let's take a closer look.

Below I outline typical wait times for various loan programs based on which financial circumstance you went through.

Short Sale

FHA Loan - 0-3 years depending on circumstances.
VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
Conventional Loan - 4 years
USDA Loan - 3 years

Deed in Lieu of Foreclosure

FHA Loan - 0-3 years depending on circumstances.
VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
Conventional Loan - 4 years
USDA Loan - 3 years

Foreclosure

FHA Loan - 3 years. As little as 1 year if borrower qualifies"Back to Work" program.
VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
Conventional Loan - 7 years
USDA Loan - 3 years

Chapter 13 Bankruptcy

FHA Loan - 1 year if payment period has elapsed.
VA Loan - 1 year if payment period has elapsed. 7 years on loans > $417,000
Conventional Loan - 2 years from discharge date, 4 years from dismissal date
USDA Loan - 1 year if payment period has elapsed.

Chapter 7 Bankruptcy

FHA Loan - 2 years from discharge date.
VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
Conventional Loan - 4 years from discharge date, 4 years from dismissal date
USDA Loan - 3 years from discharge date.

I often advise my clients NOT to wonder. Don't wonder if you're ready. Find a lender you trust and find out if you're ready. If you're not ready, the worst thing you would walk away from this experience with is the truth and a plan. Sounds like a win/win to me.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation. If you're local , just remember Andy@LoisLauer.Com I'm always here to help.

My business thrives by word of mouth. If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

Friday, February 13, 2015

How do I know if I'm ready to buy a house?

Don't get overwhelmed. Ask for help.

Simple! You go into a lender's office and ask. What? Is it that simple? Yes. Really! Just do it!

I don't 'wonder' if I need to have a cavity fixed. I ask my dentist! Don't waste time wondering if you might qualify. Ask a lender. "But I don't want to go through all of that paperwork drama." OK. I'll make it even easier. Find a lender. If you don't know one, ask your friends and family who they use. Don't want to ask them? Ask me! I trust my business to a brilliant and hard working gal who works in our office. Her name is Melissa Chagolla. Click here to reach her. Now...call or E-mail your lender and say this: "I'd like to buy a home but I'm not sure what I qualify for. Can you help me with that?" That's all it takes. Just start the process. Once the ball is rolling it's really a straightforward process. I'm happy to help if needed; sorting, scanning, copying, organizing, e-mailing, delivering, documents, etc. It's all part of the process. Your lender and I can help make this process as smooth as possible.

Your lender will probably ask for what I call "Your 2, 2, & 2."

2 years of taxes (or at least your W-2s or 1099s to start with)
2 months of bank statements
2 months of pay stubs

Your lender will take it from there. Did you know that you can be approved for a mortgage with a credit score as low as only 600. Sure...a credit score of 750 or 800 might qualify you for a lower interest rate, but the average credit score in California is only 651. You probably qualify right now and don't even know it. There are grants and programs that provide downpayment assistance and help with closing costs. There are even areas such as Calimesa, Cherry Valley, Oak Glen, and parts of Beaumont and Yucaipa that qualify for a USDA program with up to 100% financing. Your lender knows what's possible...and what's best.