A select group of buyers are waiting longer than necessary to re-enter the housing market after a short sale or foreclosure.\u00c2\u00a0 This is understandable as most loan programs require a minimum wait of 3 years after a foreclosure and some up to 5 years!\u00c2\u00a0 The one exception has been if the borrower did a short sale and remained current at all times (some lenders will not allow this in a short sale in order to \u00e2\u20ac\u0153punish the borrower\u00e2\u20ac\u009d) they possibly could get an FHA loan more immediately.<\/p>\n
That is now changing.\u00c2\u00a0 The market place is responding to the times and there are new \u00e2\u20ac\u0153portfolio\u00e2\u20ac\u009d loans (loans made by a bank with their own money \u00e2\u20ac\u201c gasp) that are now available to those who wish to return to the housing market sooner after a foreclosure or short sale.\u00c2\u00a0 While these \u00e2\u20ac\u0153Second Chance Loans\u00e2\u20ac\u009d are not perfect for everyone, for some this new program can solve a problem \u00e2\u20ac\u201c allowing the buyer to jump back in to the market place quickly while values still remain aggressive.<\/p>\n
Here are the primary criteria:<\/p>\n
Must have a minimum of 25% down<\/p>\n
The housing payment must be under 50% of their income<\/p>\n
Borrowers must demonstrate the ability to make the loan payment<\/p>\n
Interest rate based on total circumstances (expect above market rates)<\/p>\n
Your \u00e2\u20ac\u0153troubles\u00e2\u20ac\u009d must be behind you (financial troubles)<\/p>\n