2015 is looking to be the year of the boomerang buyer, or repeat homebuyer.

The housing crash in 2008 caused financial hardships for many, but now buyers are looking to get back into the market to purchase a home and take advantage of the low rates and rising housing market.  

If you experienced a bankruptcy or foreclosure or short sale, be aware of the new rules of lending.

Borrowers today have 5 options in obtaining financing to purchase a home.

The majority of mortgages are funded by:

  • Fannie Mae           2. Freddie Mac             3. FHA                  4. VA


If you are looking to purchase and need financing, chances are, you will be using one of the above. It is important to know the current waiting periods/rules when you re-purchase, after a hardship:

Home Loans After Bankruptcy

  • Conventional (Fannie or Freddie): Chapter 7 – 4 years from Discharge
  • Chapter 13 – 2 years.
  • FHA: Chapter 7 – 1 year; Chapter 13- 1 year.
  • VA: Chapter 7 – 2 years; Chapter 13 – 1 year.

Home Loans After Foreclosure

  • Conventional (Fannie or Freddie): 7 years from sale date. If you included foreclosure in a BK, you can qualify after 4 years instead of waiting 7 years.
  • FHA: 3 years. FHA buyers can qualify again after just 1 year if they experienced an economic event.
  • VA: 2 years.

Home Loans After Short Sale

  • Conventional (Fannie or Freddie): 4 years from sale date.
  • FHA: 3 years. If the FHA buyer did not have any late payments before their short sale, they are allowed to automatically qualify again for FHA financing. There’s also a great FHA program called FHA Back to Work Program. If buyer experienced an “economic event” where their household income fell by 20 percent or more for a period of at least 6 to 12 months, FHA has reduced the waiting period to only 1 year.
  • VA: 2 years.

What if you don’t fit into these rules?

Other mortgage options are available for borrowers who don’t fit these guidelines

Right Choice Mortgage has portfolio lenders which provide options for buyers who cannot qualify for the above guidelines. Our portfolio lenders still use “common sense” when it comes to underwriting and approving your file.

  • Have you re-established new credit since the financial hardship?
  • Is your income stable and consistent?
  • Will you be living in the new property?
  • Do you have a down payment or equity in the property?

The interest rates are excellent with these lenders and we can close a loan in 3 weeks.

The first step is talk with someone who cares, and can guide you through the process. Jackie has been working in the mortgage industry since 1997 and has worked with borrowers with perfect and not-so-perfect credit. She will make the process easy to understand and get you to the right lender for your situation. Many people she talks with are surprised to find out, even with financial hardship, they are able to purchase NOW.

One of our happy clients:

“I couldn’t believe it! After talking with multiple lenders and getting declined by all of them, I came across Jackie at Right Choice Mortgage. Our family had purchased many rental properties and during the housing crash they were all upside down. I made the decision to short sale 4 of them and 2 of them were foreclosed on. When I wanted to refinance my home’s 6.5% interest rate, no one wanted to help me. Jackie was able to get my rate down to 4.5% and I’m now saving $420 a month”

Wondering if it’s time to be a home owner again?

Call Jackie today 949-600-0944 and see about get approved.

Jackie Barikhan (California Bureau of Real Estate No. 01962240/ NMLS 914312) is a Loan Officer based in Orange County. Reach her at 949-600-0944 or jackie@mylenderjackie.com

For more information, visit www.mylenderjackie.com