How to Buy a Home After A Short Sale or Foreclsure and Mortage Interest Rates
Foreclosures and short sales have affected 100’s of thousands of homeowners in the Stockton, Lodi market as well as the national market. Yesterday I had Alvin, one of my earlier clients that had done a short sale 31/2 years ago contacted me and asked when he could buy a home again, and he and his lovely wife couldn’t stand living in a rental. It’s a question I am asked daily. The answer is yes. If you have done a short sale or foreclosure after 3 years and in some cases 2 years.
· FHA Mortgage Loans: One of the most popular loan programs available. FHA loans only require a 3.5% down payment as opposed to conventional loans that require 10 to 25% down. FHA requires 3 years waiting period. Today’s FHA interest rates are 3.75% to 4.25%.
· FHA guidelines: If potential buyers have mitigating circumstances such as illness, temporary medical issues, job transfer or natural disasters FHA guidelines allow the buyer to avoid the 3 year waiting period.
· Conventional Financing: most conventional mortgage lenders loans are insured by Fannie Mae or Freddie Mac and they require a 2 years waiting period. These lenders require a down payment of 20%. Average national interest rates are running 3.5% to 3.75% for conventional mortgage loans.
There is life after a short sale or foreclosure and if you have done a short sale or foreclosure 2 to 3 years ago and interested or curious about finding out if you qualify for a mortgage loan call us. To prepare to buy a home, maintain you credit, pay your obligations on time and work with a trusted lender that will help you prepare. The Real Estate Team of Hugh Lilly and Maria Estrada at PMZ Real Estate have help buyers reach the real estate goals. Call us at 209-479-9222 to qualify to buy a home. Search for homes for sale in Stockton and Lodi at www.your-new-address.com .