Home Buying in 85296>Question Details

Lgmeggers, Home Buyer in Gilbert, AZ

Can a loan be gotten with a foreclosure of less than 3 years fico 720 no other credit issues?

Asked by Lgmeggers, Gilbert, AZ Sun Mar 10, 2013

Help the community by answering this question:


There is only one tradition mortgage loan program that will allow a purchase after a foreclosure less than three years and that is a VA loan. FHA and USDA require a 3 year waiting period, Conventional is even longer. There are special allowances that can be made where someone can purchase as soon as 1 year due to extenuating circumstances but that is case by case and is very-very rare and in my 25 years in the business, I have only seen it done once.

Best of Luck!
1 vote Thank Flag Link Sun Mar 10, 2013
Yes there is a new program for FHA by HUD for people in your shoes you just need 12 months from the date of the Bankruptcy, short sale or foreclosure.

The U.S. Department of Housing and Urban Development (HUD) recently announced the “Back to Work – Extenuating Circumstances” program, aimed to help people who have lost their home through foreclosure, short sale or bankruptcy. HUD has reduced the previously required minimum of 36 months to 12 months before they may be able to finance another home, given that they meet HUD’s minimum eligibility requirements.
0 votes Thank Flag Link Sun Sep 1, 2013
At the minimum you will have to wait 3 years from the date of your foreclosure to qualify for an FHA loan. My advice would be to start working with a Lender now, so that when that 3 year date rolls around you will be ready to buy! I work with some wonderful Lenders so if you need a recommendation please give me a call!

Tina Martinez
West USA Realty Revelation
0 votes Thank Flag Link Tue Jul 23, 2013
Hi Lgmeggers,

I have good news! We are in the process of launching a new loan product in the very near future that will allow you to purchase a new home without a waiting period if you just had a Short Sale, Foreclosure, or Deed In Lieu as long as all your other items on your credit report credit have been paid on time for the prior 24 months.

You must have 25% down, the property must be your Primary Residence & cannot be a condo. The minimum loan amount is $100,000, while the maximum loan amount will go up to $1,000,000.

Please feel free to contact me directly 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
Sun West Mortgage USA, Inc. (FN)
NMLS Company ID: 3277 / Branch ID: 359295 / LO NMLS ID 263779

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 refinance loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Escrow Hold-Backs!
Web Reference: http://www.ezAZloan.com
0 votes Thank Flag Link Mon Mar 11, 2013
Hi, I asked my lender and got this response:
The minimum waiting period for FHA is 3 years and Conventional is 7 years. The only exception is on a VA loan(military personnel) you can become eligible after 2 years.
Whether a perspective buyer is eligible now or still within the waiting period they should contact a mortgage professional to determine full eligibility.
If you'd like to speak to him, he's Chase McLane at VIP Mortgage. 480-374-0713. And if you have a "realtor" related needs, please contact me. Check out our reviews on here.
0 votes Thank Flag Link Mon Mar 11, 2013
Dear LG:

There is not much, but it may be possible. We can review your scenario with some lenders.

Another possibility is a "seller may carry" home for sale with a 15-25% down payment providing a bridge financing vehicle for 3-5 years. See samples of seller may carry homes available: http://link.flexmls.com/ub7k1q5dnm5,12

Let me know if you need my help.

Jeffrey Masich, Realtor, GRI, MBA
Arizona homes and land for purchase or sale
0 votes Thank Flag Link Mon Mar 11, 2013
You may be able to get a conventional loan. Call me so we can discuss the details
0 votes Thank Flag Link Sun Mar 10, 2013
The mortgage Brokers are correct when we are discussing the typical product lines. We have some Portfolio products available that bridge the gap for some borrowers, works well for some.

Portfolio products are held by the banks and not sold into the secondary market so the banks have greater latitude to make reasonable decisions. Anything going into the secondary market has to fit in the box or the answer is no, portfolio gives a little flexibility to the box!
0 votes Thank Flag Link Sun Mar 10, 2013
I do echo George sentiments. I would love to see more of us so call brokers read the underwriting guidelines for the various mortgages before they give advice and for FHA loans as an Invester we will not buy that paper and i know the same for Chase, BOA & Wells Fargo. good luck before 3 years.
0 votes Thank Flag Link Sun Mar 10, 2013
Have you spoken directly with a lender?
0 votes Thank Flag Link Sun Mar 10, 2013
We have a few products available that allow under certain circumstances a new loan right away after a foreclosure.
0 votes Thank Flag Link Sun Mar 10, 2013
You should be able to qualify for an FHA loan with 3.5% down, as long as your foreclosure was finalized at least 2 years go.
0 votes Thank Flag Link Sun Mar 10, 2013
Good morning,

Please read an article we wrote, http://www.newresalehomes.com/2011/12/22/buyers-waiting-peri… as to your timelines for purchasing a home again. If you have any questions, please do not hesitate to contact us.
0 votes Thank Flag Link Sun Mar 10, 2013
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