Question Details

 My3kids, Real Estate Pro in Mesa, AZ

When does the 3 year (FHA Loan) waiting period start for buying a home after foreclosure?

Asked by My3kids, Mesa, AZ Sun Jan 15, 2012

We left our home back in the summer 2010 when it was up for auction and foreclosed. The house is still sitting empty and has not even been put up for sale. We are anxiously waiting to be able to buy another home. We have kept up with all of our other bills and our looking forward to doing it right this time and giving our family a forever home. When does the waiting period start? After the home sells to another owner from the bank?

Help the community by answering this question:


Major derogatory events include foreclosure, short sale, and Chapter 7 bankruptcy. The mandatory waiting period of each of the aforementioned events are as follows, assuming credit has been re-established by the borrower :

Foreclosure : Must wait 3 years before eligible for FHA-insured financing
Short Sale In Default : Must wait 3 years before eligible for FHA-insured financing
Chapter 7 Bankruptcy : Must wait 2 years before eligible for FHA-insured financing
Under the FHA's expected new plan, these waiting periods will be waived in full.

Soon, FHA-insured loans may be available to home buyers who may have been recently foreclosed upon; for whom a short sale was necessary; or for whom a Chapter 7 bankruptcy was discharged yesterday.

The FHA's new waiver on foreclosures, short sales and bankruptcies would add to the national pool of home buyers, creating buy-side demand for housing and upward pressure for home values nationwide.

Web Reference:
3 votes Thank Flag Link Thu Jul 23, 2015
I had a client who wanted to buy a home in Arizona, but he had a foreclosure. After researching the web I found a loan program at, they allow a mortgage after a foreclosure. There is no waiting period. Good to see lending options coming back.
1 vote Thank Flag Link Sun Apr 21, 2013
The waiting period starts on the date of the foreclosure sale recorded in your county records.

What is sad is that I had client who, on advise from their attorney, included their home in their foreclosure. They also notified the lender that they were moving out of their home, that they were not going to make anymore mortgage payments, & included the keys in that letter.

The lender waited over a year sell the home thru the foreclosure process, in which, at the end of the sale, the lender still owned the property; they bought it at the auction. So, the 3 year (FHA Loan) waiting period started a year after they gave the house back to the bank. They are now waiting for their 4th year to pass since giving their home back to the bank, before they will qualify for an FHA loan.

Please feel free to contact me if you have any further questions, I'd be glad to help.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, USDA, Jumbo, Conventional, plus, we allow Escrow HoldBacks!
0 votes Thank Flag Link Sun Jan 15, 2012
When the bank takes ownership which depending on your bank could happen anytime after the foreclosure auction.

I would not hang your hat on an FHA Loan approval after foreclosure, not that it can not be done but we are finding it very difficult, you had better had not one mishap in that three years, the house you are buying better be in perfect shape one little mis-polarity outlet will get the bank an excuses to disqualify you in the eleventh hour. You see the very lenders that foreclosed on you underwrite FHA loans and they have it out for victims of foreclosure (when the bank think that the consumer was the cause of the mortgage meltdown, not them, which caused them to loss billions dollars and look bad, they make it difficult when it comes to allowing those consumers back into the market).

Good Luck
Bob Patrick
Buy a home after foreclosure, short sale, deed-in-lieu=of or bankruptcy expert
Movin-On LLC
Helping families/people that have or will loss their homes get back into a home in as little as 6 months
0 votes Thank Flag Link Sun Jan 15, 2012
It should start from the date of the foreclosure auction when the bank took ownership. You may want to talk to a mortgage professional, however, to be sure. They are the ones that would have the exact answers and they will be happy to work with you now so that they can enjoy the fruits of your business in the future.
0 votes Thank Flag Link Sun Jan 15, 2012
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