Home Mortgage Rates

Home Mortgage Rates

If you had a Short Sale more than 12 months ago, then we have good news for you.  There are some lenders who are offering decent programs for you to buy a home for your primary residence, 2nd home or even as a rental.

Yes, you heard it right.  Some correspondence lenders are back in the game again and interested in helping the folks who have less than stellar credit.   For instance, if you have been able to restore your Credit Score to 700 and above after your Short Sale; you can qualify for an owner occupied purchase loan for $900,000 with 60%LTV with a rate of 4.85% on a 5 year fixed loan.

Sure, the rate might sound rather high, but at least it’s a start.  For us the most difficult part is the 40% down payment.  If you were buying a $900,000 home that’s $360,000 in down payment not to mention the closing and escrow costs.

That is a lot of cash to tie up on one property, but we view these programs strategically becuase with these size loans, you should be able to buy in States like Texas, Indiana, Tennessee, Kentucky where the economy is strong while real estate prices are not as absurd as California.

This way, you can use these loans to buy investment properties that can become  cash flow rentals.   What do you think?  Would you be tempted to take the plunge again back into real estate?


1) Loan Amount:  Maximum loan amount is $900,000.