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Nate Martinez's Blog

By Nate Martinez | Agent in Glendale, AZ

I went through a foreclosure, when can I buy again?

I went through a foreclosure, when can I buy again?

Many Arizonian’s have been hit with the difficult reality of a foreclosure. For some, it simply was unavoidable, for others maybe it was the best financial decision they could make, given all the other options. Just because you might have hit hard times during the downturn of the market, does not mean you can never own a home again. In fact, you might be surprised to learn how soon you can repurchase, even if you had a bankruptcy with a foreclosure or short sale. Here is quick look at what the guidelines are today:

FHA
Foreclosure: 3 years
Short Sale: 3 years *if you were current on your mortgage payment during the short sale process, you maybe eligible sooner
Chapter 7 Bankruptcy: 2 years from discharge date
Chapter 13 Bankruptcy: with permission from the chapter 13 trustee, borrower maybe eligible for new loan, as long as they have 1 year of positive payment history

VA
Foreclosure: 2 years
Short Sale: no documented information yet, however, can assume the FHA rule applies
Chapter 7 Bankruptcy: 2 years from discharge date
Chapter 13 Bankruptcy: with permission from the chapter 13 trustee, borrower maybe eligible for new loan, as long as they have 1 year of positive payment history

Fannie Mae
Foreclosure: 7 years
Short Sale: 2 years with 20% down payment, 4 years with 10% down payment
Chapter 7 Bankruptcy: 4 years from dismissal/discharge date
Chapter 13 Bankruptcy: 2 years from discharge date or 4 years from dismissal date 

Freddie Mac
Foreclosure: 4-7 years with 10% down payment
Short Sale: 4 years
Chapter 7 Bankruptcy: 4 years from discharge date
Chapter 13 Bankruptcy: 2 years from discharge date

Of course, there are exceptions to every rule and the guidelines are changing constantly. If you or someone you know has gone through a foreclosure, bankruptcy or short sale in the past 2 to 5 years, it is time to consider purchasing again. In some areas of the city, you can purchase a home today for less than it sold for new ten years ago – you can’t rent for less than what you can own a home for today. If are unsure of your edibility, please give me a call. We can connect you with a professional loan officer who can assist you with the qualifying process.  

602-942-7000
www.NatesHomes.com

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