Question:

I have a 100000 career as a Registered Nurse and have a foreclosure on my record from 2 1/2 years ago. My credit score is about 640. My boyfriend is self employed but has the option of getting a VA loan. He is in construction and has had to claim a loss on his taxes the last two years just to make it through. He has a credit score over 780. Is there anyone that will give us a mortgage loan under these circumstances?

Answer:

Several options comes to mind:

• FHA guidelines are two years after a foreclosure, which means you could qualify for as little as 3.5% down.
• Hard-money lenders will often make loans six months after filing bankruptcy or a foreclosure, but will a require 20 to 35% down payment. The interest rate will be very high and the loan terms are not as favorable; many will contain prepayment penalties and be adjustable.
• Subprime lenders (not to be confused with hard-money lenders) are no longer making 100% financed loans.

Related posts:

1. Will a short sale affect my credit rating

2. Executing a deed in leu of foreclosure

3. Second mortgage foreclosure

4. Low Mortgage Lenders : Hope In the Foreclosure Plan?

5. Home Loan / Foreclosure Help from the Government