Orange County FHA, VA & First Time Buyer Loan Information: Jumbo Home Loan One Day after Foreclosure or Short Sale

My goal is to provide valuable information for home buyers, both First Time Buyers and Move Up Buyers. This information will be about loan programs such as FHA ,VA, Conventional Fannie Mae and Freddie Mac, Reverse Mortgages, and even Portfolio Jumbo programs. I will also touch on tax advantages of homeownership, Rent vs. Own analysis, and any other aspect of loans and home ownership that will be of interest to Orange County home buyers and homeowners.

Jumbo Home Loan One Day after Foreclosure or Short Sale

Although it may be hard to believe, it is now possible to get a Jumbo Loan only one day after a short sale, foreclosure, or Deed in Lieu in Orange County, CA. And this is not a Private Money or "Hard" money program. It also is not a 100% financing program. And definitely not a Stated Income Jumbo program. Borrowers for this program will be very strong when it comes to documentable income and assets. But those that do qualify, this program is awesome.

Qualifying Requirements

There are several basic requirements that a potential borrower needs to be aware of before getting too excited. First, this program is only for the purchase of a home, not a refinance. Also, there can only have been ONE "event", meaning that borrower cannot have more than one short sale, foreclosure, or Deed in Lieu. For example, if a borrower lets two rental properties go into foreclosure, or had a short sale and a foreclosure, then they will not qualify for this program. Only one "event" allowed.

Also, the minimum FICO score allowed is 660. This would be difficult to attain one day after a foreclosure if the borrower had multiple mortgage lates prior to losing the home. But it doesn't take much to restore credit and many would be surprised at how quickly a FICO score will climb back after a major "event" if debts are paid down, payments are made on time, and credit is used.

This is a full income and asset documentation program. Two years tax returns will be reviewed and a total debt to income ratio of no greater than 43% is required. The down payment cannot be a gift and must be "seasoned" in the borrowers bank statements for at least 60 days. Since the underwriter will be closely reviewing the bank statements for any deposits that would need to be sourced and seasoned (and not a gift), it is important for potential borrowers to not move money around for the two months leading up to their home purchase. That suggestion is actually a good rule of thumb for any loan program these days.

Loan Amounts and Loan to Values

The down payment requirements for this program are very similar to any normal Jumbo loan program. (remember, this is not a "Hard" money program). Up to a $1,000,000 loan amount only 20% down is required. This means that a home buyer purchasing an Irvine property for $1,250,000 would only need $250,000 down. Loan amounts from $1,000,001 to $2,000,000 require 25% down payment. Loan amounts for $2,000,001 to $3,000,000 require 30% down payment. And loan amounts from $3,000,001 to $4,000,000 require 35% down payment. So for those home buyers looking to purchase a home in Newport Coast for $6,000,000 and have at least 35% down payment, there is now a solution.


Authored by Tim Storm, an Orange County, CA Mortgage Loan Officer MLO 223456 - Please contact my office at Home Point Financial. Direct line at 949-640-3102.

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Comment balloon 0 commentsTim Storm • November 05 2013 09:09AM