Back to Market Housing Programs

Back to Market Housing Programs

Buyers can qualify for a home loan after they’ve been through a foreclosure, short sale or a deed in-lieu-of foreclosure. They are able to qualify for certain programs based upon their baseline and their individual situation.

There are programs available with Fannie Mae and Freddie Mac, the two biggest mortgage purchasers. The loan program shortens the waiting period to buy a home to as little as two to three years after a foreclosure, deed in lieu of foreclosure, or short sale.

There must have been extenuating circumstances such as a loss of 20% of their income for a minimum of 6 months. The buyer is required to prove the loss of income was beyond their control and the hardship led to a foreclosure, deed in lieu of foreclosure, or short sale.

FHA has the “Back to Work Program” which shortens the waiting period to buy a home to as little as one year after a foreclosure, bankruptcy, deed in lieu of foreclosure, or short sale. The buyer must prove their financial hardship that was beyond their control.

Also, we’ve heard of an interesting program called the Mortgage Alternative Program (MAP). It’s a lease-to-own program which allows the buyer to get into a home while they work to qualify for a traditional home loan in the future. Again, the buyer is required to prove the loss of income was beyond their control and the hardship led to a foreclosure, deed in lieu of foreclosure, or short sale.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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