Mortgage Myth #2 - can't buy a house for years after Foreclosure, BK or Short Sale

2012 MORTGAGE MYTH #2

You can’t buy a home for several years after a Foreclosure, Bankruptcy or Short Sale. 

That is true for Conventional and HUD home loans, but there are alternatives.  In fact, you can contact Karl Holt at kholt@awmlv.com for info. about his 2^nd Chance Home Loan that can finance a home after only one year after Short Sale, Bankruptcy or Foreclosure.   As with all loans, there are restrictions and a larger down payment between 15% and 25% is required.  

Also, hard money loans are also available where credit isn’t a factor, at all and there is no waiting period after a Bankruptcy, Foreclosure or Short Sale.  Ability to make the payments is the most important factor in Hard Money Loans (aka private investor loans).  Down payments are typically 25-30 percent and it is extremely important to be sure you have a payment that is affordable and terms that will give you the time necessary to refinance into a traditional mortgage.  Also, watch out for interest rates above 12 percent and up front fees in excess of 10 percent.   Karl Holt has is a great source of information for these loans, as well.  kholt@awmlv.com   As with all mortgages, read the fine print.