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Written by Kristopher Karge, Comstock Mortgage

Hello, I wanted to thank you for taking the time to read my thoughts concerning today’s mortgage lending world. My name is Kristopher Karge and I am a Senior Loan Officer with Comstock Mortgage here in Sacramento. The question that I am asked on a daily basis usually involves when a borrower can qualify for a loan after having experienced a short sale or foreclosure. After extensive research, a borrower will qualify for a new FHA mortgage sooner than a Conventional Mortgage.

Typically, three years must pass from when the last recorded deed recorded on the prior residence to qualify for FHA financing vs. five years for Conventional financing. Most borrowers will be eligible for a new mortgage sooner if they have experienced extenuating circumstances such as poor health, death, divorce or re-location due to a mandatory job transfer. The circumstance must be out of the borrowers control and cannot be referred to as financial mismanagement. If in-fact the borrower can provide proof to one of the above mentioned circumstances, they may be eligible prior to the three year period if they choose to utilize an FHA insured mortgage. Many ask, what is the main advantage of a FHA vs. Conventional loan? The difference is that the credit qualifying criteria for a borrower are not as strict for an FHA loan as for a Conventional loan financing and the down payment or Equity requirements are less.

A borrower who has never owned or has not owned a residence within the last three years is technically considered a “First Time Homebuyer.” With this said, many programs are available to help those with less than favorable credit and lower down payments. Borrowers may also qualify for government backed down payment assistance programs, tax credit programs as well as grant programs where a majority of your down payment would be covered by an outside housing authority. Yes, there is free money out there and you should definitely take advantage of it while it is available.

Please reach out to Victoria Witham or myself with any questions you may have regarding your next home purchase. She can educate you with the home buying process and I would be happy to open the doors to a variety of home financing options. We are here to serve you.