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I Had a Foreclosure, Now What?

If you had a foreclosure, you may still be feeling rattled. Foreclosure is a traumatic experience that takes a toll on you mentally, emotionally, and financially. Losing your home means losing stability, your heart, and your safe-haven.
But don’t fret. Research has shown that many buyers return to the market in as little as two years after foreclosure. Bouncing back in such way that they earned the endearing nickname “boomerang buyers.”
So no matter your situation, it’s important to remember that there is life after foreclosure. Here are some strategies to help you.

Let Time Pass

It’s important to wait it out before rushing back into buying a house. The old adage “time heals all wounds” is especially apt after foreclosure. There’s nothing wrong with dreaming of moving back into a home, and making it your long-term goal, but your first priority should be re establishing your financial life and creating the stability you lost. 

Rebuild Your Nest Egg

If your foreclosure was due to no fault of your own, like an illness, financial problems, or loss of job, rebuilding your economic stability should be your next priority. While most lenders will have you believe that your credit is priority number one, they aren’t always looking at the full picture. Your savings can speak volumes about your character too, and replenishing it is as important as repairing your credit during the early stages.

Avoid a “Deficiency Judgment”

Owing money on your old mortgage can halt the buying process on a new home. Sometimes the money leftover from your foreclosure isn’t enough to cover the remaining mortgage. This leaves you owing the difference and is referred to as a “deficiency judgment.” This hangover, as some analysts call it, can be the difference between qualifying for that next mortgage and waiting a few more years. Figure out where you fit in and take steps to fix it.

Take the Fast Track

Recently, legislation was passed that made it possible for people to acquire a mortgage in as little as 12 months, effectively banishing the 3-year waiting period. Funded by the FHA, and called the “Back To Work” program, borrowers can get an FHA-funded loan even if they experienced a recent foreclosure. But in order to qualify, you must meet a few eligibility requirements; click here to find out how to qualify for your certificate and for more information regarding the process.
A foreclosure may seem like the end, but rest assure that there is still light at the end of the tunnel. Think of it as a fresh start, a new beginning with you in the lead clearing a path to your new life.
For more information on how we can help you, don’t hesitate to connect with us. Our loan officers are educated on FHA eligibility requirements and will help you through the process.

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How Do First Time Homebuyer’s Programs Work?

Buying your first home is an important milestone in your life, and here at 1st Alliance Lending, it’s a privilege for us to partner with you to help turn your dream of owning a home into a reality.

You’ve probably heard about first time home buyer’s programs, and you might be wondering if you’re a good fit, since you’re looking to buy your first home. You’ll be happy to hear you’ve come to the right place. Let’s take a closer look at what goes into a first time homebuyer’s program, and we’ll see if it’s a fit for you.

FHA Loan

Most first time homebuyer’s programs include a recommendation for an FHA loan. An FHA loan might be a good fit for you for a few different reasons. First of all, you might not have a lot of money for a down payment on a home right now. You also might have just entered into the job force, and you’re not making as much money as you will be in say, five to ten years. It’s also possible that your credit score might not be excellent, either due to lack of credit, or because you made some mistakes with your credit when you were younger.

With an FHA loan, you’ll find that the credit and income requirements are much more flexible than other types of mortgage loans. The FHA loan is government-insured, which means you can have the flexibility you need, without a large down payment on your first home. You will need mortgage insurance with an FHA loan. Our expert sales team will be able to work with you to determine if you meet the eligibility requirements for this type of loan.

Which loan is right for me?

Whether you’re a first time home buyer, or you’ve dealt with foreclosure in the past, and you’re looking to purchase a house after doing some repairs on your credit, the only way to know which loan is right for you is to speak with a professional who can offer you guidance.

Here at 1st Alliance Lending you’ll find that our staff is reliable, honest and trustworthy. It’s our goal to put our borrowers first. If you’re interested in learning more about mortgage options, we would love to talk with you. For more information, contact us today.

We'd Love to be Your Back to Work Lender

We’d Love to be Your Back to Work Lender

If you’re like some families in the United States, you may have suffered a foreclosure because of a job loss recently. The economy sent many families into financial crisis, and unfortunately, foreclosures were much too common for a large percentage of our country.

Now that some time has passed, hopefully you’ve been able to recover a bit from your financial hardships during that time. Many families have found that a more stable economy, along with a growing number of available jobs have made it much easier for them to cover their expenses, and even get caught up on some of those older bills they weren’t previously able to pay.

If you’re thinking about buying a new house now that you’re back on your feet, you’ll be happy to know about a new type of FHA loan that’s available for people who are in your situation. It’s specifically designed for people who have gone back to work after losing a job and suffering through a foreclosure. As your Back to Work Lender, we’re excited to teach you about this program.

An FHA loan is different from other mortgages because the United States government insures the money. It’s a loan with more flexible credit score and income requirements, and it also requires a smaller down payment. With the Back to Work Program, you may be able to qualify for an FHA loan in as little as twelve months after your foreclosure and job loss, as long as you’ve recovered from your financial difficulties.

Here at 1st Alliance Lending, we enjoy being able to provide people like you a second chance at owning a home. We have an excellent sales team, and pride ourselves on our lending expertise. We will provide great service, with honesty, integrity and guidance. We understand that sometimes foreclosures and job losses happen, and sometimes there’s nothing you can do to prevent them. When you’ve worked hard to repair your credit and pay off your debts, we feel that you deserve a second look. Our team will work hard on your behalf, help you understand the FHA loan process and ease your anxiety about reentering the housing market.

We’d love to talk to you about the Back to Work Lending Program. For more information, please contact us today.