After losing your home in foreclosure, you may believe that qualifying for another loan requires many years. Fortunately, that is not true. There are many options for home buying after foreclosure, and some of those options are immediately available.
Since foreclosures remain on credit reports for 7 years, some home buyers may have a waiting period of seven years. However, extenuating circumstances, such as large medical bills, divorce, long-term unemployment and other unavoidable events may shorten the waiting period.
Home buying after foreclosureÂ is virtually impossible without a good credit score. Fortunately, credit cards for those with bad credit are available, and those who need to re-establish their credit should use one of them. By paying the full amount by the due date each month, the userâ€™s credit score rises rapidly.
Home buyers who have gone through foreclosure should examine the reason for foreclosure, and begin immediately working to get another loan.
FHA Loans After Foreclosure
FHA loansÂ are available 3 years after foreclosure. There is an exception for documented extenuating circumstances that may reduce the waiting period. However, the borrower must re-established a good credit score after the foreclosure. Â Borrowers who were current on their mortgages and other installment sales qualify if the short sale proceeds serve as payment in full.
VA Loans After Foreclosure
VA loansÂ are available 2 years after foreclosure. Borrowers must meet other qualifications such as income stability, ability to pay rent, have no negative credit reports since the foreclosure, and other similar criteria.
The VA has added a special group that specializes in getting veterans approved for home buying after foreclosure. They offer credit counseling and other services that help veterans secure loans.
Conventional Loans After Foreclosure
The normal waiting period forÂ conventional loansÂ after foreclosure is 7 years. Documented extenuating circumstances may reduce the waiting period to 3 to 7 years. Standards for conventional loans are established by Fannie Mae and Freddie Mac.
Flexible Home Loan Program
With theÂ Flexible Home Loan Program, home buyers become eligible for a new mortgage ONE day after foreclosure or short sale. Since good credit scores are required for every home purchase, the Flexible Home Loan Program requires a credit score of 600 fico. By using the Flexible Home Loan Program, home buyers can have a second chance at home ownership without waiting for a long period of time. If you are looking for a second chance to own a home after a foreclosure, check out the Flexible Home Loan program today.