Fresh Start Buyer
If you have lost your home in the past due to foreclosure, short-sale, bankruptcy or divorce, we want you to know that you are a very special and respected segment of our clientele. Life happens sometimes and, in the world of mortgage lending, time heals all. A common theme we find with our “re-entry” clientele is doubt. Qualification doubt and readiness doubt, “I don’t want to make the same mistakes again” doubt. Let’s arm you with education and information so you can remove the doubt and replace it with practical confidence. Our style of patient, high-availability customer service is something we think you’ll appreciate and find helpful. Below are segments of information tailored for the Fresh Start buyer.
Home Purchase Process
Mortgage has changed quite a bit over the aught-years and while qualification criteria has tightened and the overall process has become more complex, this “tightening and complexity” translates to a safer lending culture for the consumer. We have the process down; that is our job, and we’ll guide you every step of the way. Click below for a refresher of the five main stages of the purchase process.
Am I Eligible?
Many are surprised to learn how quickly eligibility can be restored after a major adverse credit event. Check out the guidelines below:
- VA eligible once Bankruptcy, Foreclosure, Short-Sale, Deed in Lieu (DIL), Notice of Default (NOD) is 2 years old.
- FHA eligible once Chapter 7 or 13 Bankruptcy is 2 years old.
- FHA eligible once Foreclosure, Short-Sale, DIL or NOD is 3 years old.
- Conforming eligible once Chapter 7 Bankruptcy is 4 years old.
- Conforming eligible once Chapter 13 Bankruptcy is discharged, if 12 months of timely payments were made to the trustee.
- Conforming eligible once Foreclosure is 7 years old UNLESS Chapter 7 Bankruptcy was filed ahead of the foreclosure which changes the wait time to 4 years (very few know of this hidden guideline).
- Conforming eligible once Short-Sale, Charge-off, DIL or NOD is 4 years old.
- Recorded IRS Federal Tax Lien? You can use FHA to purchase a primary residence.
- Federal tax liens automatically subordinate the purchase of a primary residence.
First-Time Home Buyer Loan Programs
Yes, not only do you have all “regular” loan programs available to you once eligibility is achieved, you also have all First-Time Home Buyer programs available as well, if you have not owned a primary residence in the last 3 years. Click below to take a deeper look.
Down Payment Assistance Programs
Even down payment assistance programs are available to you as well. Some require you to have not owned a primary residence in the last three years, others do not. In this world, you can have access to up to 7% in assistance, 0% second mortgage liens, gift funds, reduced mortgage insurance premiums and there are grants available for those in the following line of work: law enforcement officers, emergency fire/medic responders including administrative staff in support of firefighters, members of the CalSTRS or UCRP, employees of accredited private, charter or public school districts or California State University, Junior College or Private College including school administration and staff. Click below for more learning.
A Quality Pre-Approval Process
We understand the potential wariness you may be feeling about what you do and don’t qualify for. For home buyers who complete our pre-approval process, they receive the assurance of a fully underwritten and fully vetted loan file, never a “quick glance and good-to-go”-type of pre-approval. Frankly, there is no magic. It’s a simple combination of focus, experience, knowledge, being good at what we do and most of all: holding ourselves personally accountable for getting it right because this is very important to you. Please click below for more information about a quality pre-approval process.
Quality Loan Estimates
Surprises can be wonderful- birthday surprises, flowers, short trips out of town. Or, surprises can be devastating- “whoops, your payment is $300 more than initially quoted” or “whoops, we actually need to bring $18,000 to closing, not $11,000”. “Whoops” is unacceptable. We don’t do “whoops”. Click below for more information about quality loan estimates.
