Need help to find financing for myself after I short-sold my previous home

[Steven Britton]

I recently decided to get into real estate investing and step number one is to “house-hack” my way into land lording. My wife and I are looking to purchase a multi-family home, either a duplex or a single family with an accessory dwelling unit (sometimes called a mother-in-law apartment). The problem I’m having is I short sold my house in November of 2012 and as such am unable to obtain any conventional loans. I can walk through the entire story of why I short sold if the users here think it would add value, but what I’m looking for is advise on where I can turn to obtain financing.

To be clear, I have 20% available for a down payment on most of the properties I’m looking at here in Seattle, WA. I have a good job that I earn a strong ordinary income from; in addition my credit score is already back above 720. I’ve been speaking with a broker who says they offer a “fresh start” program – but the interest rate is over 7.5%. So where do I go now? What are the avenues I should be searching to gain access to funding?