Mortgage Articles Library
The ever changing mortgage environment can be challenging. My goal is to help keep clients and business partners well informed. Utilize this Mortgage Aricles Library as a resource on important mortgage topics. If you have questions, please don't hesitate to call us - we're here to help navigate the dream of home ownership.
Buying a House After a Foreclosure, Short Sale, or Bankruptcy
If you or someone you know is one of the many
Arizonians who lost their home as a result of a foreclosure, short
sale or bankruptcy, there is hope! Not only is homeownership
possible again, but it may be easier than you think. In most
cases there is a waiting period before you are eligible to qualify
for a home loan. But buying a house again doesn't have to be
complicated once you know the waiting period that applies to your
personal situation and take the necessary steps to prepare
Buying a House After - The Waiting Period Chart
More good news--you don't have to navigate this process alone. Going through a bankruptcy, foreclosure, or short sale can be tough enough, you don't have to try to figure what you need to do to buy a house again by yourself. One of the keys to success is choosing an experienced and knowledgeable mortgage professional to develop a path to re-establish you as a credible and ready home buyer. With over 18 years of experience in residential lending, I'm confident that we can work together to prepare a plan for you to take advantage of this rebounding real estate market.
Learn more about it:
FHA Loan Limits for Arizona Zip Codes
Housing and Urban Development's FHA Loan Limit Calculator.
Visit the FHA Limits Calculator
The Mortgage & Loan Process
Glossary of Terms used with Mortgages in Arizona
This calculator is made available to you as a self-help tool. All examples are hypothetical and for illustrative purposes only. Any calculations assumes the theoretical borrower will have excellent credit and are based on information you have provided. Any amount calculated is an estimate only. The actual amount may be higher or lower depending on location, loan type, and many other determining factors. This information was prepared by an independent third party, and accuracy is not guaranteed. We encourage you to seek personalized advice from qualified professionals regarding all financial issues and needs.
A conventional loan is one that is not guaranteed or insured by the Veteran's Administration (VA) or Federal Housing Authority (FHA).
The majority of conforming conventional loans abide by the mortgage guidelines established by the government-sponsored entities known as Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation). Conventional loans with less than 20% down require private mortgage insurance. Since Conventional Loans are not insured by the federal government there is no guarantee for the lender should the borrower default. These loans are considered higher risk for lenders and generally have more restrictive underwriting guidelines.
Conforming conventional loans:
• Loan amounts up to $417,000 (in AZ)
• Credit score impacts mortgage interest rate
• No mortgage insurance required with 20% or more down payment
• Can put down as low as 5% (private mortgage insurance required)
• Mortgage insurance may not be required for the life of the loan
• Most lenders follow automated underwriting requirements
• Guidelines differ slightly between Fannie Mae and Freddie Mac and not all lenders offer
both underwriting options
Jumbo conventional loans:
• Loan amounts greater than $417,001 (in AZ) and up
• Credit score impacts ability to obtain mortgage
• Jumbo lenders guidelines vary from Fannie Mae & Freddie Mac and are typically more strict
• Requires 2 years most recent tax returns
• Generally require at least 20% down; there are a few lower down payment jumbo loan options
• Most require a manual underwrite which is the most strict underwriting approach today