For anyone dealing with a negative housing event, there’s a new mortgage program that may be able to help get you back on your financial feet. Home State Bank has initiated a loan program that helps customers rise above past issues with their home, including a short sale, a foreclosure, a deed-in-lieu situation, or even a Chapter 7 or 13 Bankruptcy filing.
“In the past year, approximately seven million people have been impacted by a negative housing event,” said Jim Sorenson, Vice President and Residential Mortgage Sales Manager for Home State Bank. “These ‘Fresh Start’ mortgage loans can help those people refinance an existing home, or purchase a new, more affordable home.”
Several criteria must be met to receive approval for a ‘Fresh Start’ mortgage loan. “Applicants need to be able to afford the home, and they need a 10-15% down payment,” said Sorenson. “We’ll accept gift money for a down payment, in case someone has a relative or friend willing to help get them back on their feet. We’ll consider credit scores as low as 580, which is lower than most application cutoff scores for larger banks.”
This ongoing program offers two choices, a 30-year fixed or a 5/1 ARM mortgage. There’s no prepayment penalty, and no private mortgage insurance is required. The loan is for single family homes; 2-4 unit owner-occupied property, structure, or buildings; and condos (with some restrictions).
“Interest rates may be slightly higher than average, but for some people, this is their only option,” added Sorenson. “We encourage applicants to make an appointment to come in and discuss their personal situation. In the case of a foreclosure, this loan is a chance to avoid having to wait 4-6 years before being able to purchase a home again. We look at the whole picture, and try to get people into a home they can afford.” For more information, please contact:
Jim Sorenson, Vice President and Residential Mortgage Sales Manager
Home State Bank, N.A. – Equal Housing Lender
NMLS No. 488093