Need help financing primary residence

[David Mitro]

Here's the situation. My fiancé and I are trying to buy a new construction home. We were set to settle on April 30. On Monday, after working with a bank for over a month, we were notified that we were denied due to the fact that my fiancé had a foreclosure in July 2011. (Yes, we were also alarmed it took that long for something that is on her credit report to be noticed by them) Currently, you have to wait 3 years for a fha loan and 7 for a conventional after a foreclosure. The foreclosure was due to a divorce and neither of us have spent time in the military.

We were doing a Fha loan in her name only. We were doing it this way because I purchased a 4 unit property in August 2013 on my own and can't have another fha loan. I also wouldn't qualify on my own for a conventional loan as I don't make enough money.

The most we could put down would be 5%.

We are scrambling now and in a difficult situation.

Does anyone have any ideas and/or suggestions?