We all have watched the news and kept vigilant upon the ever changing guidelines of the mortgage industry. It is being said that the “All American” loan of 30-year fixed is going away and being replaced by 15-year and 20-year terms. Starting next year, April 2012, there are going to be new rules in effect. What is it and how is it going to effect us, the home buyers? The new ruling called QRM (Qualified Residental Mortgage) is widely believed that it will force a much larger down payment to increase to 20% of the home price.

What does all of this mean to a family who has faced or is facing a  short sale or foreclosure? FHA loans have and still continue to be the easiest loans to obtain. Putting down 3.5% based on the purchase price of the home and paying 3-6% for closing costs. Sometimes closing costs can and are paid by the seller. Lenders will look for buyers with a 640 Fico score (some will accept a lower score, however more down payment will be required). The Lender will require documents such as income verification, assets, job history, bank statements and two years of tax returns. Some guidelines that will be followed upon applying for a loan after a short sale or foreclosure are: minimum of two years since a discharge from bankruptcy, minimum of three years since foreclosure and zero to three years since a short sale; depending on the circumstances surrounding the short sale.

If you have faced a short sale or foreclosure and would like to look at purchasing a new home for your family again , call a local lender and check out your options.

Article from Real Estate Insider News from Harris Real Estate University -http://realestateinsidernews.com/breaking-real-estate-news/mortgages-after-a-short-sale-or-foreclosure