Financing in Park Place>Question Details

janice.marti…, Home Buyer in Mobile, AL

My husband and I had a conventional mortgage and it was foreclosed in March 2012. Can we qualify for a FHA loan?

Asked by janice.martin93@yahoo.com, Mobile, AL Thu Oct 4, 2012

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Eventually you could, yes. To purchase a home with FHA financing it requires a 3 year wait from a foreclosure. There is an exception, and that is if the foreclosure was due to documented extenuating circumstances (got sick/in an accident, death in the family, victim of fraud, etc.), FHA requires that you wait at least 1 year from the foreclosure sale. If required to pay rent, then verification of an on time rental history would also be required. In any situation with a foreclosure, there needs to be re-established credit, typically defined as 12 months of on time payments as well as no new delinquencies. I recommend at least 3 trade lines (forms of credit) of 12 months of on time payments, with both installment (loans, etc.) & revolving debts (credit/store cards, etc.). If your loan doesn't fall under the extenuating circumstances category, then at least 24 months of on time payments with one of the trade lines would be very helpful to qualify as soon as the 3 years is up.

Shane Milne | Lending in all 50 states | NMLS #81195
1 vote Thank Flag Link Thu Oct 4, 2012
Great advice. The only i would add is to make sure your creditor are reporting to the 3 major credit agencies.
Flag Thu Oct 4, 2012
No, that was only 6 months ago. FHA requires that at least 36 months must have elapsed from the Foreclosure Date.
0 votes Thank Flag Link Thu Oct 4, 2012
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