According to a recent estimate, around 10% of the all the homes in the United States are either nearing foreclosure or they are late on their mortgage payments. It is a fact that, going through the ordeal of foreclosure is emotionally tough for an individual. Most people going through foreclosure have doubts about whether they would get to own a house again. Well, there was a time when getting the finances for a second home after going through a foreclosure was tough. Banks and other financial institutions were reluctant in giving out loans to people who had foreclosure on their records. This left such individuals with no other option but to get the services of the lenders who would lend out at a higher interest rate.
Fortunately, things have become a little bit easier now. Now, you can get a loan to buy a new property although you would face challenges in doing that. You need to have a down payment on the house and you need to prove that you have the ability to pay the interest. You also need to be prepared to go through some hassles.
The first thing that you need to look at is the down payment. Most banks would probably accept nothing less than 20% of the purchase price of the home as down payment. However, there are some lenders who would accept a down payment of as low as 5% of the of the loan amount. However, since VA and FHA Loans do not require a down payment, they would not allow any applicants who have already gone through foreclosure. If you have filed for bankruptcy, then you need to wait for seven years before you get qualified for such a loan. Therefore, if you want to buy a house again, you need to arrange for 10% of the purchase price as down payment, just to make sure you get a loan.
Next, you would need to prove that you are eligible to pay the interest. You need to convince the lender that you are able to pay the interest even if you lose your income. That is the reason why, most of them would require you to have enough money in your checking or savings account so to cover 6 months of mortgage payments. You also need to ensure that the total monthly payment (which would include the interest, principal, taxes, and insurance) does not exceed 33% of your total income.
The last thing that you need to be prepared for is the hassles associated with taking a loan after foreclosure. In most cases, you would need to wait at least 3 years after the foreclosure, before you finally get eligible for the loan from a lender. In some cases, you even have to wait for as long as 7 years. It would be of great help if you get in touch with a loan expert before deciding to apply for a loan. They would guide you by giving you suitable advice that would help you get a loan, even after you have foreclosed. Get the help from the experts and take the right step, which would help you relive the dream of owning a home with Texas VA loans.