Home Buying in Chicago>Question Details

Spice, Home Buyer in Chicago, IL

A friend of mine have a forclosure on his credit report but he has 50k in the bank, earns 95k a year. Can he be approved for a home, and if so what?

Asked by Spice, Chicago, IL Tue Nov 13, 2012

steps will he have to take ?

Help the community by answering this question:



Your friend can buy as soon as he wants, if he pays cash. If he wants to qualify for a mortgage, he'll have to wait at least two years for a VA loan, 3 years for an FHA loan, or 4 years (if he's putting at least 10% down) thru Freddie Mac.

Of course, he'd need to re-establish good credit after the foreclosure, and pay his bills on time.

If you have any other questions, please feel free to give me call or visit me at my website.


Matt Bukovy
Senior Mortgage Consultant
Wintrust Mortgage
Web Reference: http://www.mattbukovy.com
1 vote Thank Flag Link Tue Nov 13, 2012
Fannie Mae rules are 2 -years after forreclosure a borrower may jump back in. But as you might expect, someone may loan money for a price. Be careful.
0 votes Thank Flag Link Thu Nov 15, 2012
Some banks, including Citizens/Charter One Bank may be able to get your friend approved for an FHA mortgage as quickly as 2 years after the foreclosure. Each situation is a bit different so the best course of action is to contact a mortgage broker who has access to multiple lenders.
0 votes Thank Flag Link Wed Nov 14, 2012
#1: Have your "friend" speak to a lender
#2: He can buy anything he wants for CASH
#3: As per the foreclosure, it depends on how long ago it happened. After a few years he should be able to qualify again for a loan.
0 votes Thank Flag Link Tue Nov 13, 2012
How long ago was the foreclosure? It might be possible to get a pre-approval now or in the near future. Contact me for some lender referrals.

Best of luck,

Ivan Sagel
0 votes Thank Flag Link Tue Nov 13, 2012
Your friend has to allow for some time to establish his credit, and depending on the circumstances of the loan, a wait of at least two years and probably longer before he can buy again, unless he is a cash buyer.
there is also the possibility he can find owner financing on a property, but he can safely assume any loan is gong to cost more and the longer he can re-build his credit, the better.
0 votes Thank Flag Link Tue Nov 13, 2012
He can clean up his credit by paying back what he owes for the foreclosure.
0 votes Thank Flag Link Tue Nov 13, 2012
I would speak to a lender directly about this.
0 votes Thank Flag Link Tue Nov 13, 2012
My web site has some lender references. Give them a call.
0 votes Thank Flag Link Tue Nov 13, 2012
You need to speak with a loan officer regarding this. Try speaking with two or three different banks. If you need referrals feel free to contact me.

Jorge Vega
0 votes Thank Flag Link Tue Nov 13, 2012
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