You may be asking your self when can I buy a home after foreclosure? We have answers. There now is a program for homebuyers just 1 day after foreclosure. Don’t go expecting a fannie Mae interest rate however, but it is a good option none the less. Here are some details about the 1 day after foreclosure mortgage loan:
1 Day After Foreclosure Mortgage Loan
- Interest rates start at 6.99%
- 25% down (30% to qualify for the rate listed above)
- Maximum loan amount is $1,000,000 (However plan on putting 35% down for a loan over $500k)
- Minimum loan amount is $100,000
- Minimum credit score is 600. (Rate is slightly higher than 6.99% if you have below a 650)
- Gift funds ARE allowed for down payment (slightly higher interest rate)
- Loan terms are 3, 5, and 7 year fixed rates (This is intended to be a band aid loan)
- Only available in California and Arizona presently
- Condo’s may not be eligible. Case by case.
- 2% Origination charge on loan balance. (This is added to closing costs)
- Minimum of 3 months payment reserves required.
- Loan can be used for a purchase or a refinance
You may be thinking… wow that is a high interest rate. Keep in mind, you just went through foreclosure not too long ago and who else is going to lend you money right now? Look at it this way. In one year, will values be high enough to justify the rate and fees you just paid? CNBC Reported recently that Prices in 20 cities gained 9.3 percent year-over-year… the biggest increase since May 2006. If you purchased a $200,000 last year, it would be worth around $218,600.00 based on those numbers. This new program gives you the opportunity to buy now rather than wait until later. If you would like more information about the 1 day after foreclosure loan, email us at firstname.lastname@example.org or call the toll free number above.